The Telegraph has just run this story here.What appears to really offend is the Anglophobia which the Telegraph article implies. ( Since I haven't read the report I
could accept that the quotes give the wrong impression ). See extracts quoted below:
New guidelines for town hall workers state that "many Scots, Welsh and Irish resist being called British" and says people from ethnic minorities should be called "British Asians" or "Chinese British".
...."the idea of 'British' implies a false sense of unity"
No mention of the English here ( not that anyone gets called British English - ever, nor can I see any point in doing so ). This looks like the typical Anglophobia present in many of the home nations.
Of course the irony here is that the Welsh are what's left of the British tribes after the Roman and Anglo-Saxon invasions. So of all people you would think they would stick up for the idea of being British ?