Allegations levelled at a Watford mayoral candidate over the spending of taxpayers’ money have been called a "desperate" attempt to gain political support as elections draw near.
Hertfordshire Constabulary decided that no action was necessary after officers looked into allegations against Labour councillor Jagtar Singh Dhindsa.
Police confirmed that there was no criminal case to answer for after concerns were raised at a Watford Borough Council meeting last month.
Mike Jackson, the chairman of Watford Labour Party, has welcomed the police and council’s decision not to any further action.
Mr Jackson said: "We are pleased that both the police and the managing director of the council have decided that no action is necessary on this complaint by the mayor and her deputy.
"The fact is that this matter has been stoked up by the Liberal Democrats to smear the main challenger to Dorothy Thornhill in the mayoral election.
"Her behaviour is akin to the actions of a tin pot dictator. I believe she has inappropriately involved the senior officer of the council who is also the electoral returning officer.
"She has become autocratic and authoritarian. She must be getting desperate. It's time for her to go."
Mayor Thornhill has defended the decision to report the matter to Hertfordshire Constabulary.
The town’s elected Liberal Democrat mayor said: "It can never be wrong to report legitimate concerns about probity to the proper authority.
"With the facts that we had we believe there was a case to answer. There were issues about the amount of money spent and the means of procuring the company who carried out the work on the councillor’s alleyway project were legitimate questions.
"As a result of the internal audit investigation into this issue the council has changed its procedures."
Lisa Morgan, Watford Borough Council spokesman, said: "On behalf of the council, the managing director has reviewed the matters referred to him by the police and has decided to take no further action.
"The council had already changed its procedures in light of the issues arising from the case."