A councillor was "pushed to the floor" after she confronted men who were putting up flags.
The local politician, a woman in her 40s, is said to have approached them as flags were being put up on the A259 in Seaford.
A disagreement broke out and she was then reportedly "pushed to the floor" by the two men.
Lewes District Council confirmed that the woman is a district councillor.
Sussex Police confirmed that they are investigating reports of the woman being assaulted in Seaford on Monday evening, October 13.
Police said that the woman was "pushed to the floor by two men on Sutton Park Road" at around 9pm.
A 29-year-old man from Peacehaven was arrested on suspicion of assault and has since been released on bail.
Police enquiries are continuing in efforts to locate the second suspect.
Officers are asking anyone who saw what happened, or those with relevant information such as CCTV, dashcam, or mobile phone footage, to come forward.
Information can be reported to Sussex Police online, or by calling 101, quoting serial 1350 of 13/10.
A spokesperson for Lewes District Council said: "While we can confirm the incident involved a district councillor, this is a police matter and we will not be making any further comment."
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Over the last few months, St George's flags have appeared across the country as part of a national movement called "Operation Raise the Colours."
The issue has received mixed responses from the public, with some praising the act as patriotism, whereas others feel it creates division.
There has been a particular proliferation of flags along the A259, especially in Saltdean, Peacehaven, Newhaven, and Seaford.
James MacCleary, MP for Lewes, reported last week that some of his constituents felt "intimidated walking to the shops or taking their kids to school", which he said was "appalling."
"It is time for these flags to come down," he added.
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