Ken attacks 'Walnut Whip' tax rise

Londoners will face a council tax rise equivalent to a "Walnut Whip a week" from Ken Livingstone after his planned budget for next year was slashed by the Greater London Assembly.

The comparison was made by a furious Mayor today as he tried to prove how little extra money he was now asking from Londoners for his spending plans.

His budget - revised in the light of crossparty opposition - will now increase Band D council taxes by only 44p a week rather than £1. The amended figure was passed at a stormy meeting today, but the Mayor insisted Londoners were prepared to pay more for better public transport.

In a statement, he said: "Instead of £1 a week for a typical household I am now proposing an increase of less than half that - 44p - the price of a Walnut Whip."

He added: "I regret the failure of the Assembly to recognise the need for sustained investment in public transport."

But his claims were dismissed by GLA Tories, who said Labour and Liberal Democrats had agreed to spending increases that were still far too high.

Leader Bob Neill said: "It may be a Walnut Whip a week but that adds up to £23 a year on top of the £28 increase of last year. Add that to the increases expected from borough councils, and you have a massive hike that Londoners simply cannot afford."

The main effect of the revised budget will be to slash £67.5million from the spending plans for Mr Livingstone's Transport for London organisation.

The Mayor also clashed today with Tube chiefs claiming he is not being allowed to see essential documents relating to its part-privatisation, despite a government promise.

A London Underground spokeswoman said it was refusing to hand over minutes of the LU and London Transport meeting that sanctioned PPP's go-ahead and papers relating to the report by auditors Ernst & Young, who approved PPP saying it was better than publicly funded schemes.

? The congestion charge came a step closer today as the Mayor announced a further £8million to streamline key road junctions and speed up bus journeys.