Mass citizenship ceremonies should be held at major sporting and cultural events such as the FA Cup final, Premier League matches, Wimbledon and Glastonbury as a way of celebrating Britishness, according to a new Conservative campaign group launched by the communities secretary, Sajid Javid.

The idea is part of a proposed post-Brexit “new migration contract” that would significantly reduce low-skilled migration to the UK, limit the number of highly skilled migrants to 50,000 a year and set a 70,000 annual “returns” target for illegal migrants.

The report, published on Wednesday, is the first major research by Modern Britain, which was set up by Javid and backed by Tory politicians including Kit Malthouse, Lord Finkelstein, Rishi Sunak, Suella Fernandes, Helen Grant and Syed Kamall.

It proposes raising the profile of citizenship ceremonies for new Britons by moving them out of town halls and into high-profile events – such as during half time at football matches, the Royal Edinburgh Military Tattoo, trooping the colour or the Welsh Eisteddfod – as happens in Australia.

“A citizenship ceremony is often an emotional experience for the individual and their family,” said the report’s author, Binita Mehta-Parmar.

“Swearing allegiance to the Queen and recognising the values of our country is the ultimate display of Britishness. Instead of holding these ceremonies in town halls, we should be celebrating new Britons at iconic British events. There is much to commemorate in becoming a citizen of modern Britain and it is right that our new fellow citizens are welcomed appropriately,” she said.

The campaign group also said it may be time to introduce a British version of the US practice of regularly asking children to pledge allegiance to the flag.

As part of a new migration contract, Modern Britain said it would set an annual rolling target of 20,000 asylum seekers or refugees each year with the flexibility to bank unused places to cope with wars or major humanitarian crisis. Asylum seekers would be allowed to work while their applications were decided.

Mehta-Parmar, a former leader of the Conservative group on Watford council, said the limit on refugee numbers would be accompanied by a much tougher approach on illegal immigration. A target of 70,000 returns a year – several times the current level – would be set to “earn the government new credibility to build a new national consensus on immigration for the 21st century”.

Arguing that Brexit gives the opportunity to take far greater control over immigration, the campaign group says it would extend the minimum income thresholds for non-EU work visas to EU nationals to end low-skilled immigration. The change would be introduced with a taper to allow British industries currently dependent on low-skilled EU labour to adapt.

“After Brexit, Britain will have far greater ability to control immigration. We need to use this opportunity to attract the migrants our country needs for future economic success and give newcomers the tools they need to integrate quickly. We are proposing a contract on migration that will benefit both new immigrants and British citizens,” said Mehta-Parmar.