A councillor being investigated for alleged fraud at a charity has resigned, the Guardian understands.

Labour’s Geoff Hammond, who represented Higham Hill ward in Walthamstow, was arrested in September by Westminster police investigating a reported fraud at an unnamed charity.

Mr Hammond was bailed until this afternoon, when police are expected to provide more information about the investigation.

The council’s Labour group are also expected to release a statement later today.

It is believed Mr Hammond resigned from his seat yesterday with immediate effect.

The 50-year-old was suspended by his party pending the outcome of the investigation and resigned from his position as junior lead member of the council’s Residents First group.

A residential address in Walthamstow was searched after his arrest in connection with the investigation.

He was arrested when he attended a central London police station by appointment on September 17.

The fraud is alleged to have occurred between May 2012 and July 2013.

As his resignation comes less than six months before local elections there will not be a by-election.

Mr Hammond was elected to Higham Hill ward in May 2010.