'£60bn to stop meltdown'

London needs at least £60 billion for its transport networks to cope with a predicted population explosion, an influential report will conclude tomorrow.

Government is accused of preventing the money being raised by its refusal to allow local authorities to raise their own finance.

The report by Professor Stephen Glaister of Imperial College will add to the clamour by local authorities for relaxation of the finance rules. "Most British cities say they want to spend more on their transport systems than they do now - this is particularly the case in London," said Professor Glaister.

"But Government has put all the local authorities under very strict central control for years. They cannot do anything without permission from Government. If we are going to raise the sort of money needed it will have to be paid for out of new local taxes."

He said other cities around the world, including New York and Paris, are allowed to raise their own finance. The report, entitled London: On The Move Or In A Jam? has been compiled for Development Securities, specialists in city regeneration projects including Paddington Central and the Royal Business Park in Docklands. The report says: "London Transport has been starved of sufficient investment since nationalisation in the late 1940s. More than half a century of neglect has taken its toll on the reliability of the city's public transport networks."

The report highlights:

In July the Treasury will announce the results of its spending review, which will allocate the funding for London's transport system. Meanwhile, a Mori poll reveals today that more than eight out of 10 Londoners believe the capital will suffer a September 11-style attack.

Most people say they would pay more council tax to fund extra police to combat the menace.