The National Front has claimed it is opening a branch in Bicester to oppose Home Office plans to build an asylum seekers centre outside the town.
Members of the far-right group have been attracted to the town by the on-going opposition to proposals for the centre for 750 people near Arncott.
But members of the Bicester Action Group, set up to protest against the centre, have distanced themselves from the NF and said they were shocked by the plan to open a local branch.
James Williams, who will co-ordinate the NF branch, said: "The main reason we are setting up here is because of the public opinion in the town which is saying the asylum centre is a definite no-go.
"We are looking seriously to be putting up candidates for the May elections for the district council and we have members lined up."
The NF has been spotted in Bicester several times since the asylum centre plans were announced. Members have been handing out leaflets against the proposals, and so far have been peaceful.
Dionne Arrowsmith, of the BAG, said: "Obviously we are shocked at the idea of the National Front opening up here, but not surprised. The way the Government has behaved over the last few months over the asylum issue has left it wide open to this kind of activity."
"We have distanced ourselves from the NF since the start of our campaign."
District and town councillor Diana Edwards said she hated the National Front and everything it stood for. She said the party was allowed to stand, as it was democratic, but hoped no-one would be taken in by it and that its arrival would not cause racial problems.
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