More than 2,000 people are expected to gather at a pro-Palestinian rally today amid fears far-right protesters could hijack the event.

Organisers of the annual Al-Quds Day demonstration claimed authorities in London had 'bowed' to pressure and threats from anti-Islamic groups by ruling it could not take place in its traditional Trafalgar Square venue.

The Greater London Authority denied the decision was last-minute and said permission to use the site was refused because the event did not have appropriate insurance.

For the past 27 years, a number of groups - both Muslim and non-Muslim - led by the Islamic Human Rights Commission have gathered to make a stand against oppression of all kinds.

But instead of meeting in Trafalgar Square, the crowd will listen to speeches by guests including Dr Daud Abdullah, Sheikh Bahmanpour, Rabbi Ahron Cohen, Yvonne Ridley and Anas Al Tikriti in Pall Mall. <:od>

Organisers blamed the decision on threats made by far-right groups such as the English Defence League, which issued a call to members to descend on the rally to oppose it.

Raza Kazim, spokesman for the Islamic Human Rights Commission, said: 'At the last minute after months of negotiation, the GLA told us we are not allowed to go ahead with the rally in Trafalgar Square.

'We are very annoyed. It seems they have bowed to the pressure from people like the English Defence League.

'Instead of standing up to their threats they have capitulated.

'A place that was being used to raise voices against fascism is now being given over to the very bigots we are supposed to be standing against.'

Mr Kazim said the organisers were experienced and followed correct procedures during negotiations to stage the event, for which it had not been possible to obtain public liability insurance for a number of years.

A spokesman for the Mayor of London said: 'The Greater London Authority has at no point given permission to the organisers of this year's event to host a rally in Trafalgar Square.

'The application was considered in the usual way under the terms and conditions of hosting such an event and, on the basis that the organisers have not been able to obtain Public Liability Insurance (PLI), the GLA took a decision to decline the use of the Square.

'This decision was based on the fact that, in the absence of PLI, the GLA's insurers are not prepared to underwrite the event which would mean that allowing it to go ahead would expose the GLA to unnecessary and potentially very expensive risk.'

The English Defence League, which claims to be 'peacefully protesting against militant Islam', posted on its website: 'We urge everybody who can to come to London to oppose this.'

A spokesman for the Met Police said: 'There is appropriate policing in place.

'We will facilitate the procession as we always do.'

The dispute came as a Cabinet minister raised fears of a return to 1930s fascism, comparing modern right-wing groups to Oswald Mosley's Blackshirts.

Communities Secretary John Denham, announcing a drive to prevent white working class people being 'exploited' by extremists, singled out protests being organised by the English Defence League.

'I think that the English Defence League and other organisations are not actually large numbers of people,' Mr Denham told yesterday's Guardian. 'They clearly, though, have among them people who know exactly what they're doing.

'If you look at the types of demonstrations they've organised ... it looks pretty clear that it's a tactic designed to provoke and to get a response and hopefully create violence.'

The dispute comes after anti-Islamic protesters from another organisation - Stop Islamisation of Europe - demonstrated outside Harrow Central Mosque on Friday.

The Muslim Council of Britain urged mosques and associations to be vigilant against provocation from the far right and to use lawful and peaceful means such as ensuring an 'inter-faith response', advising young Muslims against joining counter-protests and enlisting more volunteer stewards.

A spokesman added: 'We agree with the Communities Secretary John Denham who condemns the far right and observes that their actions are designed to provoke Muslims.

'The MCB therefore commends the strategy of the MCB affiliate Harrow Central Mosque who responded to the provocation by deploying all reasonable and peaceful means to counter far-right anti-Muslim demonstrations.'