Labour demanded action after Tory chairman Brandon Lewis hinted that Rosemary Carroll was safe despite a tweet last year where she compared an Asian to a dog.
Ms Carroll rejoined the Conservatives as the “votes were being counted” on Friday – giving Tories the critical seat needed to seize control of Pendle in Lancashire.
Business Secretary Greg Clark said: “If they are the views of this person, she has no place in the Conservative Party.”
Just moments later, Brandon Lewis said he would have a “look at this”.
But he insisted she “accidentally posted something she wanted to delete”.
And he said: “She has been through training, she’s apologised, she has had punishment.
"This was all dealt with locally at the time.
“There is a big contrast between where we are and Labour.”
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