David Blunkett has ruled out the immediate introduction of new laws to create a system of identity cards.

Speaking on the conference fringe on Monday, the home secretary said: "The first emergency measure which will deal with the question of tackling terrorism head-on will not include legislation on identity or entitlement cards."

Following intense media speculation around the issue, Blunkett said that no decision had yet been made. "I am not interested in addressing this issue purely on the back of the attack on the World Trade Centre. We are thinking about it. We may launch a consultation on the issues around it. We have not ruled it out," he said.

The Treasury has also expressed concerns at the cost of an ID card system, which could hit £1 billion. Civil liberties groups said they were pleased with the "climb down".