Ricky Jones, 58, was found not guilty at Snaresbrook Crown Court of encouraging violent disorder.
In a viral video, Jones, wearing a black polo top, was seen addressing supporters in Hoe Street, Walthamstow, on August 7 last year, labelling far-right demonstrators as “disgusting Nazi fascists” and saying: “We need to cut all their throats and get rid of them all.”
The rally was in response to a planned far-right march outside Waltham Forest Immigration Bureau.
Jones, a full-time official for the Transport Salaried Staffs’ Association union, was arrested on August 8 last year.
He was suspended by Labour the day after the incident, with a party investigation still understood to be ongoing.
Prosecutor Ben Holt described Jones’s speech to the court as “inflammatory, rabble-rousing language”.
During the trial, Jones clarified that his comments referred to those allegedly placing National Front stickers with concealed razor blades on trains, not the far-right protesters present at the rally.
He expressed his disdain for political violence, asserting he believed in peaceful protest.
Jurors deliberated for just more than half-an-hour to acquit Jones, who has been a borough councillor in Dartford, Kent, since 2019.
He declined to comment on the verdict.