Thanks for the feedback everyone it has been helpful toward getting some clarity on things.
To change jobs isn't really an option, where I am and the area I work in has limited options. To change would incur significant repercussions in a number of ways, I suppose if things deteriorate even further I'm going to have to go. It irks me that she can stay irregardless of her behaviour.
I really have no faith in the system eg grievance . A family member has been through something similar and was hung out to dry. A colleague took out a grievance on a similar personality...again someone everyone knew was problematic,.... and she wasn't found favourably on any of the points she had raised against her manager despite having good 'evidence'.
I think I'm in a lose lose situation. I am going to document everything to try and protect myself. This woman has already redirected some of her behaviours back onto my colleague, someone she has had issues with before. My only hope is things get to a point that it becomes a collective alliance to protect ourselves.
There are people adjacent to us in our office who could back me up in some of the incidents or exchanges, but not all. Some of the people involved are not in our team and I haven't known them long. I would feel very uncomfortable asking them to get embroiled in my mess. She has told lies about them also and they might be persuaded if this continues to say something. Unfortunately we are changing offices to a more isolated environment therefore limiting others observing her antics.
Ultimately the system has to be robust, I don't feel it is and feel very unsupported, despite the number of people who have been on the receiving end of her 'special attention ' !
Daisychain01 thanks for clarifying the difference between bullying and harassment. She is indeed a bully.
Again thanks everyone.