The force is in talks with the Crown Prosecution Service about the legality of the content of leaflets distributed in the run-up to the 10 June elections.
A police spokesman said: ‘The Newcastle Patriot Election Special, which claims to be a BNP publication, states that asylum seekers are given free mobile phones and even cheques to buy cars.’ He added that the publication’s assertions were false.
Newcastle City Council also denied claims made in the literature. A spokesman said: ‘The council took issue with damaging claims made in BNP election literature and their potential for raising racial tension. We sought the advice of police as to how this might be addressed.’
BNP spokesman Dr Phill Edwards denied the party was stoking tension.