Livingstone sets cap on his share of council tax

Ken Livingstone has promised to limit the increase in his share of the 2005 council tax to under five per cent.

The Mayor issued an "absolute guarantee" that the rise in bills from next April would be both the lowest since he came to power in 2000, and in line with Government targets before a general election of "less than five per cent".

But he still faced criticism from political opponents, who said his cap was double the level of inflation - and unjustifiable after planned hikes in bus fares and the congestion charge.

Mr Livingstone will publish the first draft of his next year's budget proposals tomorrow, which would mean the Mayor's share of a typical band-D bill would rise £12 from £241 to £253.

But with most of London's 33 councils likely to opt for a similar percentage rise, this would take a total average bill in London to £1,175 - up £56 on the £1,119 currently paid. It follows increases of 18 per cent last year and 5.8 per cent from April this year.