You ask a good question, and I have no really good answer. Maybe it makes them feel important.
The British Muslims I know aren't in the least offended by someone wearing a cross, or Christmas celebrations and lights, or Easter sweets. Most of them don't want special accommodation. They don't need it any more than British or American Orthodox Jews require special accommodation.
Liberals and conservatives both hate it whenever these daft officials come up with over-the-top ideas based on their notions of perceived sensibilities as felt by minority communities. It isn't as much a Labour 'thing' as it is the invention of Tony Blair and his sycophants, invented to demonstrate their ultra-sensitivity.
Of course, there are those people I call 'the mouthpieces', the loudmouth radicals, Muslims who are the British equivalent of your Al Sharpton (back when he was ranting, before he went mainstream). That lot get the attention of the media far beyond their influence in the community, though they do have their followers. In truth, the radical POV has nothing to do with the moderate beliefs of the Muslim community in general, like the bloke who owns the local chippie, or the chemist, or the radiologist. Those people have lives to live, and only want to get on with things.
Perhaps the best thing I can say is that your political leadership there is unworthy of the troops, sailors, etc that serve them.