Government plans to allow anyone to set up a school could lead to social and racial segregation in Bradford, a teaching union leader has warned.

Ian Murch, Bradford Secretary of the National Union of Teachers, said there was no evidence “free schools” raise educational standards. Instead the Swedish government is trying to end its scheme just as Britain is about to embark on it, he said.

Schools Secretary Michael Gove wants teachers, charities and parents to be able to set up new schools in response to parental demand. They would be independent state schools run by teachers and accountable to parents.

Mr Murch warned: “There is no evidence there do any good in Sweden. They believe it has lowered educational standards and they say it has increased social and religious segregation in the system.

“People who want to segregate themselves, either if they are rich and want to get away from poor people, or ethnic communities who want to segregate, can apply for funding. I think it would be a very big issue in Bradford.

“Bradford has prided itself quite rightly that all faiths and ethnicities are educated together.”

However, a group of parents fighting to set up their own school have welcomed the announcement.

Lesley Surman, of campaign group Birstall, Birkenshaw and Gomersal Parents’ Alliance, said: “It’s just great news for people like us who have got a need for their own local school.

“We believe that we have a shortage of places in this area, so it is a need, not just a want and so now the idea can become a reality. It is very daunting but it is exciting as well because everything it is we have been working towards for the last three years.”

According to Government more than 700 groups have expressed an interest in setting up a school, including three in Bradford.

A teacher at Dixons Allerton Academy Sajid Hussain supports the move. He said: “School leaders now have a chance to address the imbalance of a quality education in socially-deprived areas and develop a platform that can become a springboard for others to join such as charities, philanthropists, parents and employers.

“I believe competition will drive up standards and will help existing schools to do more in parental engagement and raise their game in delivering better standards in teaching and learning. New small Free Schools with personalised curriculums will also be particularly effective for children and young people with learning difficulties or disabilities.”

Shadow Schools Secretary Ed Balls said the Government’s proposals were a “free market experiment” that would not work in the education system.