THE Muslim community must be closely involved in developing the next stage of Britain's anti-terror policies, say MPs.
The Home Affairs Select Committee concluded that Asians were not being victimised by controversial police stop and search powers.
But relations between ethnic groups have deteriorated and more should be done to tackle Islamophobia and anti- Semitism, the report said.
Muslim leaders should continue to condemn "forcefully and unequivocally" attacks on Jews by members of their community, said the MPs, and there should be better information on the extent of Islamophobia.
After a five-month inquiry into how the threat of terrorism was affecting community relations, the committee said while there was no evidence Asians were being unreasonably targeted,
there was a clear perception among all Muslim witnesses that Muslims were being stigmatised.
It said: "Special efforts should be made by the police and Government to reassure that they are not being singled out unfairly."