Tower Hamlets has been described as a “basket case council” by outgoing Labour group leader Cllr Joshua Peck after a complaint against an opposition councillor was withdrawn after more than a year.

The comments follow the news that thousands of pounds was spent pursuing an investigation against Tory group leader Cllr Peter Golds – only for a tribunal judge to approve withdrawal of the case earlier this month.

Cllr Peck said: “There has been a massive failure of governance at the Council, with some seriously worrying things happening.

“Tower Hamlets is now a basket case council, which is why last month councillors asked the Local Government Association to support the head of paid services in carrying out a review of governance.

“I’ve yet to see any evidence of progress on this but I hope we will soon”, he added.

Cllr Peck announced in January he is to step down as Labour group leader in April after being approved to adopt a child with his partner. He will continue to sit on the back benches of the council chamber.

A council spokesperson said a call for an investigation following the withdrawal of the complaint against Cllr Golds was under consideration.