Haringey Council has resumed funding at a private school in Tottenham after an investigation found no evidence of links to controversial Muslim party Hizb ut-Tahrir.

Funding to the Islamic Shakhsiyah Foundation, in St Ann's Road, was suspended in 0ctober 26 when the council started investigating school after concern was raised.

It was alleged the school's curriculum contained elements of Hizb ut-Tahrir's version of Islam which calls for a union of all Muslim states into one global empire — the caliphate. It also rejects democracy as well as assimilation into Western culture.

The school received £113,411 of Government educational grants in 2007/8 for its schools in Tottenham and a sister school in Slough from the Early Years Fund to help support its nurseries.

As part of the investigation, council officers visited the school to look into these concerns and concluded that "no evidence was found to suggest inappropriate content or influence in the school".

The council said it also established that the early years provision met the necessary requirements in order to receive the grant.

In a statement, the council added: "The school is taking steps to make sure that pupils learn about different cultures and traditions, including joint work with a local Church of England primary school.

"We also asked the school for written, formal confirmation that the school no longer had any links with any individuals alleged to have connections with Hizb ut Tahrir. We have now received that confirmation".

Funding will resume immediately, the council said, and backdated to October.

The council added the nursery would be monitored and if any matters of concern arose it would be investigate "immediately".

Headteacher Foziya Reddy said: "We are really glad funding has been reinstatated — although I wish it had never been suspended in the first instance.

"The school has no links to any political organisation. We were caught up in a whirlwind media frenzy and were quite taken aback.

"What I think was forgotten was that we are just a small school with the nurturing of young children at the forefront of everything we do.

"We are a part of this community and feed back into it. We are not locked away in some room somewhere."

For the past year the school has been involved in projects with St Ann's Primary, in Avenue Road, and runs a recycling project with Haringey Council.

The school was set up in 2005 by a group of mothers accused of having strong ties to Hizb ur-Tahrir, according to an independent report published by the Centre for Social Cohesion.

Hizb ut-Tahrir maintains it is non-violent political party, but the organisation has been accused of helping to radicalise Omar Sharif, the Derby-born Muslim who tired to blow himself up outside a bar in Tel Aviv, Israel, in 2003.

Yet despite calls from critics to ban the group, Prime Minister Gordon Brown and predecessor Tony Blair both agreed there was insufficient evidence to make such an order, adding the situation would be "constantly reviewed".

More recently, Conservative leader David Cameron seized the story and raised the issue at Prime Minister's Question Time where he accused Gordon Brown of allowing councils to fund extremism.

Haringey councillor Fiyaz Mughal said: "On this occasion, with Liberal Democrat advice, Haringey Council got this right.

"This school was given a nursery grant and that grant was found to have been used in the proper way. The Conservatives used the school as a political pawn because the topic is on the agenda.

"But what damage they have done in a community like Haringey where we have always been accepting of other cultures.

"The school has been stigmatised and this will stay with them for a long time."

Mr Mughal also pointed out that Britain's own security services had not found any evidence that Hizb ut-Tahrir members were violent.