THREE Labour councillors are suing the British National Party following allegations of corruption in election leaflets.

BNP officials yesterday said they were contesting the defamation of character case, which was heard at Newcastle County Court.

Proceedings were brought by Sir Jeremy Beecham, a Benwell ward councillor in Newcastle's West End, along with fellow candidates Joanie Easton and Eric Mackinlay.

A leaflet in support of BNP candidate John Keys before the local elections in May accused local councillors of corrupt ways.

The three councillors secured a judgement against Mr Keys at Newcastle County Court in May because no defence was filed.

However, the BNP was given leave yesterday to defend its case, and a potential High Court hearing has been launched, to be heard on Teesside.

Sir Jeremy, chairman of the Local Government Association, said: "The BNP candidate was offered an opportunity to retract and apologise but did not do so."

BNP spokesman Kevin Scott said after yesterday's hearing: "We are going to fight on with this case."

A date has yet to be set for a hearing in front of a High Court judge.