Labour paves way for Ken

Labour today cleared the way for Ken Livingstone to rejoin the party - if he can pass a fresh test of his loyalty.

The party's ruling body, meeting in private at Westminster, voted by 25-2 to pave the way for Mr Livingstone's readmission to the party. A final decision is expected in January.

Nicky Gavron, Labour's current mayoral candidate, agreed to step down at once from her position. She supports Mr Livingstone's re-entry and hopes to run as his deputy.

The move to overturn his five-year expulsion, imposed when he stood as an independent in 2000, came despite opposition from some members of the National Executive Committee.

Mr Livingstone faces an interview from an NEC panel. It will report back to another full NEC meeting, where a final decision will be made.

The complex process amounts to a compromise between supporters and opponents of Mr Livingstone on the NEC. But crucially, it means the principle of the Mayor's return to the party had been accepted.

The loyalty test demanded by the panel is likely to be along the lines of that in 1999, in which Mr Livingstone was repeatedly questioned by a party panel before being cleared to stand against Frank Dobson in Labour's mayoral selection contest. A spokesman for Ms Gavron said she had tabled her offer to "stand aside" in the interests of party unity. The NEC was understood to have accepted the offer.

A question mark remains over what Labour would do if Mr Livingstone was not readmitted. Ms Gavron could be restored, or a new contest to select a candidate could be held.

The panel was expected to include John Prescott, an opponent of Mr Livingstone, and two men who support his readmission - party chairman Ian McCartney and trade union representative Michael Griffiths.

The move, backed by Tony Blair, last night won overwhelming support from the Labour Party's London Board.

Mr Blair turned up late for today's NEC meeting and left half an hour, later, before a decision was taken.

Matt Carter, 31, Labour's new general secretary, will oversee moves to settle the row over Mr Livingstone.

Both Mr Brown and Labour's deputy leader John Prescott are said to be against Mr Livingstone's return, as are a powerful Cabinet array including Foreign Secretary Jack Straw, Education Secretary Charles Clarke and Hilary Armstrong, the Chief Whip. No 10 has made it clear Mr Blair believes that Mr Livingstone, with an acceptable record in the job, should be Labour's candidate in next year's mayoral elections.

There were fears in the leadership that Ms Gavron could be relegated to a humiliating fourth place in the poll.

Downing Street today was sending out positive signals at full volume. The Prime Minister's official spokesman said Mr Blair "recognised that the congestion charge has been a successful policy and one we wish to look at".

Asked about the Mayor's unbridled attack on George Bush, whom he described as "the greatest threat to life on this planet", No 10 played down the issue, saying: "We made clear at the time that there was some difference of view on some matters."

Mr Livingstone himself took a similar line today as he revealed he had applied formally to rejoin the party yesterday. Yet he claimed he had not been asked to sign any "loyalty pledge" as a condition of re-entry.

"I have never been asked to give any undertakings," he said. "I am what I am. The Government is what it is. We have disagreements. There are people who get married. Then they divorce. They have a few years apart and decide they missed each other terribly."

Former Labour leader Neil Kinnock warned yesterday: "Ken Livingstone has only ever belonged to one party - the Ken Livingstone party."