Ken faces toughest test

Ken Livingstone was under pressure to set out his new plans for London today as he began his new job with a weakened power base.

The Mayor is on a political tightrope after losing two key seats at City Hall. For the first time, he no longer has enough back-up in the Assembly to ensure the passing of his crucial annual Budget.

Labour lost two key seats in last week's elections - meaning Mr Livingstone cannot push through his Budget without forging alliances with other parties. Labour now has just seven of the 25 seats in the London Assembly - two less than is needed to prevent the Mayor's budget being voted down by a two-thirds majority of opposition members.

Today the woman who stepped aside so he could run as Labour's official candidate in the mayoral elections is expected to be officially appointed as his Deputy. Nicky Gavron stepped down from the post last year after crunch meetings with Tony Blair and Labour party chairman Ian McCartney. Her re-appointment is believed to be part of the deal which allowed Mr Livingstone to run in last week's election on the Labour ticket.

At the time of her resignation, Ms Gavron said she was sacrificing her place as the party's official candidate in "the interests of Londoners and re-uniting the Labour vote in London".

Mr Livingstone hopes her reappointment will shore up his position at the Assembly.

Today his opponents made it clear that he would not face an easy ride - calling for an immediate change in the way he approaches his job.

In an opening shot, Tory London Assembly member Tony Arbour accused him of being a "Mayor for zone one and the East End" - and called on him to do more for other parts of the capital.

Mr Arbour demanded more action on issues including police numbers, Crossrail and the environment in the outer boroughs.

He said: "A mayoralty that focuses exclusively on particular areas will divide and disillusion Londoners. Already I fear that many major initiatives seem to be of benefit only to central or East London."

Mr Livingstone now needs to win the support of smaller parties - such as the Greens - before his crucial financial programme is put to the vote early next year.

Because the Assembly is elected by proportional representation, it is virtually impossible for one single party to have a majority - Labour has only ever had a third of the seats. But that has been enough to secure the smooth adoption of the Mayor's plans in the past. Now Mr Livingstone's opponents have the necessary majority - equivalent to 16 seats out of the 25-seat Assembly - to block his proposals.