BNP leader Nick Griffin revealed the party had done a U-turn on expelling a Burnley councillor immediately after fighting at its Red White and Blue festival.
Coun Luke Smith is now due to face a disciplinary hearing after the party earlier said he had been kicked out.
Mr Griffin's statement clarified two contradictory statements released by the BNP yesterday.
Mr Griffin added: "We are withdrawing the whip immediately from Coun Smith but we decided we cannot just expel people, so there has to be an investigation and pending that he is suspended as a party member.
"If the investigation concludes he was to blame for what happened at the festival; the party will expel him."
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