An Ofsted report which allegedly criticised a nursery for failing to teach children about cultural diversity has been withdrawn, the watchdog has said.

Town and Country Kiddies Nursery in Chestnut House, Market Rasen, had reportedly received feedback that it was not providing enough opportunities for its children to "learn about people who are different to themselves".

As a result of the review, the nursery, which cares for the under-fives, was downgraded from "outstanding" to "good" by Ofsted.

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Owner Louise Davies told the Market Rasen Mail that the report's findings reflected the absence of cultural variety in the community.

"There are things they'd like us to do over and above - children having understanding of other people and different cultures," she told the paper.

"It comes with living in the community where there isn't a great deal of cultural and ethnic diversity.

"They're not seeing that on a day-to-day basis, unlike nurseries in London where they do have it on a day-to-day basis."

According to the paper, the Ofsted report began: "Staff do not provide enough opportunities for children to develop a strong sense of belonging at the nursery and to learn about people who are different to themselves."

The education watchdog confirmed it had withdrawn the report for review following the concerns raised by Ms Davies.

A spokeswoman said: "The regional director has spoken to the owner about her concerns, and we have withdrawn the report while we review the case.

"Following this a decision will be taken about next steps."