The organiser of the Epping migrant hotel protests was arrested last night after flying a Union flag from a council building.
Footage a woman holding the flag above an entrance to Epping District Council's Civic Centre at 7.15pm yesterday.
She was then seized by police and taken away in a van - as fellow demonstrators standing nearby reacted with fury.
While the video prompted claims that the woman had been arrested for flying a Union flag, these were quickly rebutted by Essex Police.
'The arrest is on suspicion of breaching a Section 14 order,' a spokesman said - referring to legislation police chiefs can use to impose restrictions on protests they believe could result in 'serious public disorder'.
'That order set out specific areas where protest activity could take place, which did not include the Civic Centre.'
Assistant chief constable Stuart Hooper added: 'To be very clear, despite suggestions we've seen on social media, she was not arrested for flying a Union Flag.
Around 200 demonstrators had gathered outside the council building yesterday evening before the woman unfurled the flag.
Footage a woman holding the flag above an entrance to Epping District Council's Civic Centre at 7.15pm yesterday.
She was then seized by police and taken away in a van - as fellow demonstrators standing nearby reacted with fury
Anti-migrant protesters scuffle with police near the Bell Hotel in Epping yesterday
A man was also arrested on suspicion of inciting racial hatred after an emblem was reported to have been set alight.
Another man was arrested for breaching the Section 14 order after refusing to leave when the protest had ended.
All three remain in custody, police said yesterday.
Earlier in the evening, protesters stood behind metal barriers across the road from the Bell Hotel, waving at passing cars that sounded their horns.
Police officers watched on, with more waiting in vans in surrounding roads.
It comes after the Government won a court challenge last week that means 138 asylum seekers can continue to be housed at the local Bell Hotel.
The site became the epicentre of protests that swept the country last month after a migrant resident was accused of sexually assaulting a 14-year-old girl.
He denies the charges.
Protests at the Bell began last month after an Ethiopian migrant was charged with sexually assaulting a 14-year-old girl
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The continued protests led the local council to obtain a landmark High Court injunction to block the Home Office from placing any more migrants at the hotel.
The ruling immediately led to dozens of councils across the country saying they too will launch similar High Court bids to stop the Home Office filling hotels in their areas with migrants.
But anti-migrant protesters received a crushing blow on Friday, when three High Court judges overturned the Bell Hotel injunction, meaning the 138 migrants staying there will no longer be removed by September 12.
This weekend, protesters told the Mail they planned to stop paying their council tax as a protest against the Home Office, even if it means receiving jail terms.
'Our children return to school tomorrow. What is the point of paying our council tax if it is being directly used to fund a place which houses alleged sex attackers?' one said.
'And it funds a place which is causing huge worry and anxiety to locals. Girls are being followed. It goes against everything which council tax is for. We know the consequences.'
Another resident, who did not want to be identified, added: 'The feeling is so strong that the threat of prison does not worry me. I will go to jail for this.'
Sarah Corner, 44, who has lived in Epping for 20 years, said: 'We need to take a stand. Enough is enough.
Crowds march towards the Civic Centre offices in Epping yesterday during the latest anti-migrant protest
Epping became an epicentre of protests that swept the country last month after a migrant resident was accused of sexually assaulting a 14-year-old girl
'Our taxes are funding the hotel, the police and all the costs associated with it. That's not what it should be for.'
Tory councillor Holly Whitbread, who represents the ward the Bell Hotel is in, urged residents not stop paying their council tax, as the local authority is on their side.
Ms Whitbread said: 'The council tax is for important local services like waste collection and supporting the local community.
'At the end of the day, the council is fighting to get the hotel closed. They [residents] should be directing their frustration at the Government.
'The use of the Bell Hotel is completely untenable, and the council has long opposed the use of the hotel.'
Residents at the Bell have welcomed the Court of Appeal ruling.
Khadar Mohamed, 24, from Somalia, said: 'I want to say thank you Keir Starmer and his government. I am delighted with the news, wow. That is really amazing.'
He said those living at the hotel had been 'living in fear' from protesting locals.