There is a rather bemusing sentence in the report which is actually a reference to the original All-Parliamentary Report that the Government is responding too. It says,
We conclude the a minority of Islamic extremists in this country do incite hatred towards Jews. The undoubted prejudice and difficulties that British Muslims feel and their justified sense of increasing Islamophobia cannot be used to justify antisemitic words and violence.Now is it me or that a self-contradictory little conclusion? On the one hand it saying that antisemitism is wrong and totally unjustified, and then on the other it seems to be saying that Muslims' views of Jews are justified, but that they should all just keep quiet about it. Effectively the statement itself has a sub-text that could quite easily be interpreted as a nod toward antisemitism.
Might this explain why the Government itself refused to acknowledge that aspect of it? See page 8, point 15 which shows the above paragraph and then the Governments response which removes it.