Assembly votes to cut the Mayor's spending

Ken Livingstone is set to have his budget rejected for the first time in his five-year reign.

The London Assembly, now dominated by political opponents, has demanded the Mayor slash a proposed seven per cent increase in his share of the council tax.

In a historic vote, the 25-member body succeeded for the first time in securing the two-thirds consensus needed to overturn his plans.

This sets up a major confrontation - dubbed the "Valentine's Day massacre" - when Mr Livingstone returns to the Assembly on 14 February with his final amended budget for 2005-6.

A two-thirds majority then would impose spending limits he would have to obey for the next financial year.

Several Labour boroughs have also urged the Mayor to cut back expenditure.

But as the Evening Standard revealed yesterday, if he is forced to take less money from council-tax payers he has threatened a summer increase in bus and Tube fares.

Conservative, Liberal Democrat, UKIP and Green members of the Assembly last night united to call - by 18 votes to six - for a major spending rethink.

The Mayor publicly attacked the vote as "totally incoherent", but must in private now seek a compromise deal.