An inner-city councillor has dramatically quit the Socialist Party amid allegations that abuse of a woman was covered up.

City of Yarra councillor Stephen Jolly was among more than a dozen party members to resign suddenly over the allegations.

Stephen Jolly has resigned from the Socialist Party after 34 years. Credit:Pat Scala

On Tuesday Cr Jolly posted a statement on social media saying he had resigned from the party after 34 years.

"It is over a matter of principle, not politics," he said. "Despite best attempts it was irreconcilable."