A Sussex bonfire society has been reported to race watchdogs for torching a caravan full of "gipsy" effigies with the word "pikey" scrawled across the back.

The van was set on fire after being wheeled through the streets at a village bonfire party.

Now the Commission for Racial Equality (CRE) has called on those responsible for the tableau to be prosecuted for incitement to racial hatred - which can lead to a jail term of up to seven years.

One villager who attended Saturday's parade in Firle, near Lewes, with her seven-year-old daughter said she was sickened by the show.

She said: "A caravan was wheeled down the street which portrayed women and children inside, with 'pikey' written on the back and the image of a scantily-clad woman standing in the door.

"I could see other people looking shocked and I could hear shouts of 'racists' directed at the bonfire society and 'shame'."

Members of Firle Bonfire Society said the tableau, called Strawberry Fields Forever, was not a direct slur against the travelling community.

Chairman Richard Gravett said it was meant to be a political attack on the way a group of Travellers had been handled by Lewes District Council and the police.

He said: "About two months ago we had a group of travellers on land at Firle Estate and they were there for about four or five weeks.

"We tried to get them moved on but were told by the council that there were no resources and by police that their hands were tied."

He said: "On the side of the caravan there were slogans getting at the local council. There was no racism, it's nothing against the travelling community.

"What it depicted was that there is no help for anybody if this sort of thing happens. It was something that meant something to the village of Firle. Everybody understood what was going on."

Trevor Phillips, chairman of the CRE, said he believed the effigy could not have been more provocative.

He said: "Gipsies and travellers probably suffer the most discrimination of any minority group in this country. This is clearly an example of incitement to racial hatred.

"The police have to take it seriously. If we are asked at the CRE, we will say this case should be pursued and the people involved should be punished."

Emma Nuttall, unit manager for Brighton-based Friends, Families and Travellers, said: "We are utterly shocked. It illustrates the level of prejudice against travellers in society.

"It would not be acceptable to any other minority and shows the settled community don't really have any understanding of the issues that face travellers."

Guide to Lewes bonfire in The Argus tomorrow.