During Jubilee Week, a Tory junior minister ordered councillors to remove a Palestinian flag from a Lancashire town hall and replace it with the Union Jack.
Andrew Stephenson stepped in after outraged Nelson residents complained on social media that the council was plunging the old cotton mill town into disrepute.
After Al Jazeera journalist Shireen Abu Akleh was shot dead last month in Jenin, West Bank, the flag was raised on May 27.
Husam Zomlot, the Palestinian ambassador, was present for the event in Nelson.
Mr Stephenson said it is vital the death by investigated, but said the flag should be taken down at once.
He said: ‘I do not think it appropriate that that this flag should be flying in the week of Her Majesty’s Platinum Jubilee.
‘I was unaware that this was going to happen and I was not invited to the ceremony when it was run up the pole. The only flag that should be flying there now is the Union Flag.’
Earlier, people in the town questioned why the Union Jack was not being hung in the town hall on Facebook.
Councillors voted unanimously to fly the Palestinian flag at Nelson — dubbed ‘Little Moscow’ because it was so Left-wing in the early 20th century.
They said Ms Akleh had been assassinated ‘by Israeli government forces’.
Labour group leader Mohammed Iqbal, who was awarded an MBE by the Queen last year, moved the motion which was supported by Tory colleagues.
But Mr Stephenson told the Jewish Chronicle: ‘My long-standing view is that local councils should focus on local issues, not foreign policy.’
Earlier, Yvonne Pointon posted on the ‘Nelson, Lancashire — Then and Now’ Facebook page, saying she was embarrassed by the lack of Union Jacks on show.
She said: ‘Went into Nelson centre today and I am embarrassed to say not one stitch of a Union Jack or anything to represent or celebrate the Queen’s jubilee was on show.
‘It looked like a ghost town, we’ve had royalty visit this town how come no one can be a***d to celebrate — shame on the town.
‘This is when we should be throwing all disagreements out the window and coming together and celebrating an English monarch serving 70 years on the throne.
‘It will never happen again. Shouldn’t be anything to do with religion, race, royalist etc. Just embrace the fact.’
Peter Kelly said: ‘The council need to remember this is England — they should explain why no Union Jack on display.’
Robert Carson said: ‘Why is a town named after one of Britain’s greatest heroes ashamed to show its loyalty to the Crown. Admiral Lord Nelson must be turning in his grave.’
Kathleen McLennan added: ‘It’s a disgrace to Nelsonians. Councillors get your finger out, engage your brains. History needs celebrating.’
Anne Salter said: ‘Get the flags out and support your wonderful Queen.’
And Bobby Sethi added: ‘There should be flags everywhere. It’s a national celebration. Extremely disappointed by the council!’