Images identical to those on sick leaflets claiming the Liberal Democrats condone paedophilia are available on the British National Party (BNP) website.
Hundreds of residents have recieved leaflets, supposedly written by disgraced pop star Gary Glitter and claiming Lib Dems want to change the age of consent laws, ahead of next Thursday's by-election in Hale End & Highams Park. Images and information on the controversial leaflets, including a picture of bogeyman Freddy Krueger and another of children playing, also appear on a downloadable anti-Lib Dem leaflet on the BNP website.
This has fuelled speculation that BNP members or sympathisers are behind the smear campaign.
BNP deputy leader, Simon Darby, said it was not an official party decison to put out the leaflets, and that it may have been an individual member or sympathiser behind them. He said: "We are not contesting this election and we do not use these kind of dirty tricks. But the other parties do this sort of thing all the time, so they have no right to object."
But he agreed with the sentiments in the leaflets. He said: "When you look at the truth of the matter, in some cases the Lib Dem membership list is not too dissimilar to the sex offenders' register."
When challenged to prove a claim that "many" Lib Dems want to lower the age of consent to 14, Mr Darby said he did not have the proof to hand.
A total of two by-election seats are being contested in the Hale End & Highams Park ward and it is expected to be a close contest between the Lib Dems and Conservatives, with Labour also standing.
Conservative group leader Matt Davis said: "I find the idea that the BNP would attempt to interfere with an election in which they are not even standing in this totally unacceptable way to be a fair indication of their vile way of doing things."
Cllr Davis also said he was confused as to why a BNP member or sympathiser would single out the Lib Dems, as one of the Conservative candidates, Sandeep Christian, is Asian and the other Sheree Rackham, is Jewish.
Lib Dems have declined to comment at this stage as they are considering pursuing a police complaint.
Waltham Forest Guardian