The Government is facing a Labour rebellion over plans that could lead to British National Party members holding positions of power over policing.

As police forces scour the leaked BNP membership list to weed out serving officers, the Home Office will publish proposals next week for elections to police authorities in which the far-right party is confident of winning seats.

BNP leaders believe that a combination of low voter turnout and rising crime rates in a recession will bring it success at the poll.

Sir Jeremy Beecham, the leader of Labour’s 5,000 local councillors, told The Times that the prospect of extremists influencing policing was chilling. He said: “People will run on ‘fear of crime’ tickets – the process is open to populism. The BNP is one concern but there will be other single-issue groups running on platforms that exaggerate crime and fear. These elections would inevitably attract lower turnouts and less attention, making the electoral test much easier for the BNP and their ilk.”

Despite intensive lobbying from councillors, Labour MPs and MEPs, Jacqui Smith, the Home Secretary, believes that direct elections will increase police accountability. The Conservatives and Liberal Democrats also favour elected bodies to scrutinise the police rather than the current system of appointed authorities.

The Home Office proposal, which was included in a Green Paper in July, will be confirmed next week and will form part of the Police and Crime Reduction Bill in the Queen’s Speech on December 3.

Home Office sources said that they were “pushing ahead” despite the prospect of angering thousands of Labour councillors, who bear the brunt of electoral battles with the BNP, in the run-up to next year’s local elections.

Labour opponents of the plan met the Prime Minister in September to explain their position. According to one record of the meeting, seen by The Times, they came away with the impression that “an alternative to direct elections is achievable”. In return they “agreed not to push a public debate” at the Labour Party conference.

Since then the Government’s position on direct elections has hardened. Vernon Coaker, the Policing Minister, said that the proposals would enhance democracy. He told Police Professional magazine: “We should be more confident about the electorate; by and large they won’t elect extremists.”

The BNP has, however, won 54 local council seats in England – the latest last week on a 22 per cent turnout in a by-election in Lincolnshire. It won its first seat on the Greater London Authority in May and has said that it will have “a real go” at police authority elections.

Bob Jones, the chairman of the Association of Police Authorities, said: “The police have banned BNP members from joining their ranks, but under the Government’s proposals for direct elections to police authorities, they could be running local police forces.” The BNP list posted on the internet suggested that 20 party members were police officers.

West Yorkshire Police are investigating a possible firebomb attack on a car in the street where a man, 26 and named on the list, lives. No one was injured in the incident in Liversedge on Thursday night. The man, who says he is a former member of the party, said: “That list is a dangerous thing. It should never have been published.”

Times Recommends

• Postmen: We bind the nation together
• Tewkesbury: when the memories flood back
• Cast Offs actress: I’m happy that my face fits