THE borough’s ruling coalition is in danger of collapsing amid tensions over the Walthamstow Arcade site, the Guardian understands.

Since taking over as council leader in May, Labour's Chris Robbins has repeatedly clashed with his Liberal Democrat deputy John Macklin.

The cabinet has also been split along party lines on a number of key votes.

Now the Lib Dem group is to discuss whether it can continue to work with its Labour colleagues in the coalition, which was formed in 2002.

Cllr Macklin said: “We are having an ongoing consultation, an ongoing debate about whether it is worthwhile remaining in the coalition.

“The way Labour has tried to push issues through recently has not been acceptable.”

Cllr Macklin is tight-lipped about what options may be discussed, but stressed he has yet to identify a “viable alternative” to the current set-up.

Under council rules, the Lib Dems could call a special council meeting and attempt to vote out the leader and cabinet, but to succeed this would need the backing of the Conservatives.

This has prompted speculation that a new coalition, featuring members from all three political groupings on the council, is a possibility.

Cllr Matt Davis, Conservative group leader, said: “For the last eight years the Lib Dems have seen fit to prop up a Labour administration and any change of heart to debate the wisdom of doing that is to be welcomed.”

Last Tuesday Labour cabinet members pushed through a plan to start procuring a developer for the Arcade site, which will be part-funded by selling Waltham Forest Pool & Track, in Chingford Road, or “alternative assets”.

The move enraged Cllr Davis and Cllr Macklin, who believes there are too many unanswered questions about the £45m development.

Cllrs Macklin and Robbins have not spoken to each other about the Arcade scheme since the stormy town hall meeting.

The parties also disagreed over plans to bail out the Arcade scheme by borrowing £35m from the Government and in July Cllr Macklin accused Labour of politicising a family event at the Arcade site.