Protect models or lose £4m, Fashion Week told

London Fashion Week could lose almost £4.3 million in funding from Ken Livingstone unless it agrees to do more to help discourage the use of ultra-skinny models, it emerged today.

The British Fashion Council, which runs the event, could lose its grant unless it brings in recommendations made by the Model Health Inquiry, set up to tackle the problem of "size-zero" models.

The inquiry called for compulsory medical certificates for models, random drug testing and criminal record checks on agencies working with under-16s.

The London Development Agency has agreed £4.28 million for the fashion industry over the next three years.

But the Mayor revealed the deal will have a "break clause" forcing the British Fashion Council to meet a series of milestones, not yet agreed, if it is to keep the cash. In a written answer to Dee Doocey, a Liberal Democrat London Assembly member, the Mayor said: "Terms are being discussed with the fashion council.

"LDA lawyers have written into the grant agreement a break clause should the BFC not clearly make its best efforts to implement the recommendations of the Model Health Inquiry."

The inquiry, led by Baroness Kingsmill, reported last month and called for girls under 16 to be banned from the catwalk - as happened during last month's fashion week. It also suggested a mentor scheme for models, a health education programme and eating disorder helpline and an investigation into working conditions. Other recommendations included setting up an independent models' trade union. But the report failed to call for a full ban on size-zero models.

The London Development Agency will draw up an action plan with the British Fashion Council, whose spokeswoman said: "We have already acted on some recommendations and it is our intention to act on all within our remit."

A spokesman for the agency said: "We are committed to working with the industry, models, health professionals and employment law experts to improve working conditions and protect health."