Once in power, Britain's opposition Conservatives party is planning to allow Muslims to build more Islamic schools to accommodate their religious education needs.

We want to meet the rights of parents to give their children a faith-based education in accordance with their Islamic beliefs," Shadow Schools Secretary Michael Gove told the Yorkshire Post on Monday, June 1.

He said the new schools would be monitored by well-trained inspectors able to distinguish between moderate and extremist teachings. "(This will give) a sense that we are all one nation who have made a certain set of shared sacrifices but enjoy certain shared freedoms."

A controversial Islamic school will not be built in Camden after a court today rejected an appeal by the school's backers.

And at the hearing in April, the council's evidence included a letter signed by four Christian churches stating that Islam espoused views that were "incompatible with the Australian way of life".

However the council insisted its refusal was based on planning grounds, arguing it was incompatible with the rural zoning and would cause problems for traffic and neighbouring farms.

There is still a relatively high demand from parents for faith school places. Just under 6 per cent of the population count themselves as regular churchgoers but 15 per cent of all pupils attend faith schools

The areas with the highest proportion of pupils in faith schools were Westminster, with 65 per cent, and Kensington and Chelsea, with 59 per cent. In third place was Liverpool with 47 per cent.