Dave Small who was elected to Redditch Borough Council in Thursday's elections, will now be investigated amid claims he posted racist and homophobic remarks on social media.
Mr Small won his seat in the Church Hill ward, topping the poll with 665 votes.
A Ukip spokesman said: "Dave Small has been suspended with immediate effect, pending a disciplinary hearing to determine the final outcome."
It was reported at the weekend that in February 2013, Mr Small referred to gay people as "perverts" and expressed opposition to gay people being allowed to marry.
It is also alleged that he said that "thousends mor scroungers" would soon arrive in the UK as a result of a range of coalition government policies.
Dave Small, a UKIP councillor in Redditch, has been "suspended with immediate effect pending a disciplinary hearing to determine the final outcome" according to a UKIP spokesperson.
It comes after he referred to Romanians as 'scroungers' and gay people as 'perverts'.
In the comments posted on Facebook last year Mr Small also attacked the broadcaster Clare Balding and the singer Elton John.
He was elected to Redditch Borough Council last Friday.
On Thursday May 22 voters in the Midlands go to the polls for the European elections. But in some areas there are also local elections.Read the full story ›
A polling station clerk who helped her nieces pose as other voters during local elections in Derby has been sent to prison. Nasreen Akhtar gave Tameena and Samra Ali ballot papers to try to influence the result in a closely-contested ward.
The two nieces and another woman were also sentenced for their part in the fraud. But the court was told pressure had been put on them to act as they did. Our correspondent Peter Bearne reports from Derby Crown Court.
A polling clerk who helped two nieces pose as other people to vote at local elections in Derby has been jailed for 14 months.Read the full story ›
A woman has been jailed for her part in a fraud at local elections in Derby last May.
Polling clerk, Nasreen Akhtar, was today sentenced to 14 months in prison.
Tameena Ali, Samra Ali and Noshiela Maqsood, voted multiple times. They were given eight month sentences suspended for 18 months, as well as 250 hours community service.
The UK Independence Party is tonight claiming there's been a "sea change" in British politics after making big gains in the local elections in the East Midlands.
Nigel Farage's UKIP had its best result in Lincolnshire where it is now the second largest party.
UKIP's success was largely at the expense of the Conservatives - especially in the town of Boston, where a mother and two daughters gained three seats.
Our correspondent Peter Bearne reports.
The Conservatives are promising to work hard to win back support after a day of mixed fortunes in the local elections.
They managed to retain power in Staffordshire and Worcestershire but lost control of Warwickshire and Gloucestershire councils.
Across the region voters abandoned the Tories for UKIP. Alison Mackenzie reports.
Commenting on the results of the County Council elections, George Cowcher, Chief Executive of the Derbyshire and Nottinghamshire Chamber of Commerce, said:
Businesses believe that creating the right economic conditions to encourage local job creation and growth should be high on the list of priorities for all Local Authorities following yesterday’s election.
With the UK economy still in recovery and the constant need to review spending, difficult decisions will still need to be made to reduce the deficit and rebalance the books.
The issue is how this is dealt with locally and whether or not councillors make spending decisions which reflect what local people are looking for and what the economy needs.
As such, each Local Authority must prioritise the needs of its residents and economy.
The Chamber will, on behalf of its members and the wider business community, seek to work constructively with the new leadership at both Derbyshire and Nottinghamshire County Councils to ensure the voice of local business is both heard and carefully considered at all stages of the decision-making process.
The Labour Party has gained 18 seats in Nottinghamshire, taking overall control of the County Council.
The Conservative Party and Liberal Democrats both lost seats.
UKIP lost its only councillor.
- Labour Party – 34 seats
- Conservatives – 21 seats
- Liberal Democrats – 8 seats
- Mansfield Independent Forum – 2 seats
- Other – 1 seat
- Independent – 1 seat