This is the shocking moment a man paraded past the Houses of Parliament draped in an Islamic State flag with a young girl on his shoulders - before being allowed to walk free by police.

The man could be seen walking past a group of scouts near Big Ben with the little girl waving a smaller version of the jihadist group's flag just days before the anniversary of the 7/7 terror attacks.

Police confirmed that they stopped the man in the busy tourist area on Saturday, but did not arrest him as his actions were deemed 'within the law'.

The decision has been slammed on social media, with many saying it makes they feel unsafe on the streets of Britain.

A man paraded past the Houses of Parliament draped in an Islamic State flag with a young girl on his shoulders

Gavin ‏tweeted: 'Why are we allowing this to happen on our streets a man walking past big ben with an ISIS flag.

'Walk through London past Big Ben with an ISIS flag nothing done do it with swastika what would be done?'

Tony Lancaster said: 'Man walks round central London with an ISIS flag but wasn't arrested because he broke no laws.Cud only happen here.'

Henry Lawson ‏said: 'Man & child with Isis flag London....hope this is hoax.'

Police confirmed that they stopped the man in the busy tourist area on Saturday, but did not arrest him as his actions were deemed 'within the law'

The images were posted on a Korean forum after a tourist spotted the man walking around near the Palace of Westminster in central London.

It comes one week after gunman Seifeddine Rezgui killed 38 tourists, including 30 Briton, on a beach in Sousse, Tunisia.

The pictures have caused particular panic as they were taken as Londoners prepare to mark a decade since the July 7 terror attacks.

Scotland Yard said officers spoke to the man and considered his actions within the Public Order Act 1986.

A spokesman said: 'This man was spoken to by officers with consideration given to relevant legislation and a decision was taken by officers at the time that the man was acting within the law. He was not arrested.'

He added: 'Wearing, carrying or displaying of an emblem or flag, by itself, is not an offence unless; the way in which, or the circumstance in which, the emblem is worn, carried or displayed is such as to cause reasonable suspicion that the person is a supporter or member of a proscribed organisation.

The pictures have caused particular panic as they were taken as Londoners prepare to mark a decade since the July 7 terror attacks (pictured)

It comes one week after gunman Seifeddine Rezgui (pictured) killed 38 tourists, including 30 Briton, on a beach in Sousse, Tunisia

'While support of and membership of ISIS is unlawful it is not a criminal offence to advocate the creation of an independent state.'

The Public Order Act states that a person is guilty if he: 'Displays any writing, sign or other visible representation which is threatening, abusive or insulting within the hearing or sight of a person likely to be caused harassment, alarm or distress thereby.'

A Home Office spokesman said: 'ISIS is a prescribed group. Showing signs you are a supporter of that group is an offence.

'It was an operational decision and we cannot comment on individual cases.'

This week London became the scene of a mock terrorist attack when emergency services took part in a drill ensuring they are prepared 'should the worst happen'.

Emergency services were faced with a Tunisian-style terrorist gun massacre during the two-day operation.

Former Scotland Yard terror chief Peter Clarke has warned that ISIS poses 'a huge and deadly threat'.

He said: 'At the moment we are arresting one person for terror-related crimes every day. That's the highest rate at any point in 15 years, apart from the immediate aftermath of 9/11 and 7/7. There are 120 people awaiting trial as we speak.'

But he added: 'Every year since 7/7, massive plots to commit terrorist acts have been thwarted.' He called UK counter-terrorism 'the envy of the world'.