Green’s Dictionary of Slang

to inform to the police, or prison authorities.

1936		H. Corey Farewell, Mr Gangster! 279: Slang used by English criminals [...] Lollied – informed against.
1974		G.F. Newman You Flash Bastard 175: Terry had the right attitude, tell no one nothing, least of all your wife. Wives were the first to lolly you usually, not purposely, but it happened none the less.
2000		J.J. Connolly Layer Cake 179: Trot into the witness box, swear the oath and do the business for regina, lolly your buddy Morty, go Queen’s evidence, get him lifed-off.
2004		N. ‘Razor’ Smith A Few Kind Words and a Loaded Gun 171: The bods who do it are grasses. They’ll lolly you up as soon as look at you.