Vote to slash Ken's £140m demand

Ken Livingstone is facing the prospect of massive cuts to his spending plans after his political rivals voted in favour of slashing his budget for next year by two thirds.

At a stormy Greater London Assembly's budget meeting yesterday, Labour and Liberal Democrat members joined forces to vote against the Mayor's proposed £53-a-year rise on the average London council tax.

They said his demand for an extra £140 million from council tax payers - an increase of 35 per cent on last year - should be reduced to an increase of no more than 12 per cent.

"Too much too soon" was being asked for transport schemes that were still a long way off, they claimed, while their alternative 12 per cent increase would still allow Mr Livingstone's key congestion charge project to go ahead.

But the Mayor - clearly angry - hit back by claiming that their proposed cuts would merely slow down his plans for the capital.

Speaking after the end of yesterday's all-day meeting, he said: "They have betrayed their own voters. Their budget proposals will see £80 million in cuts to bus service improvements, road maintenance and better facilities for the disabled.

"The people who have voted for them are the people who will be benefiting most from the public transport improvements I have already started."

The exchanges marked the first round of the closing stages of the battle over the budget, which will be settled at a final meeting on 13 February.

Assembly members can block the budget and force Mr Livingstone to submit revised plans if they can agree by a two-thirds majority on an alternative figure for spending increases.

Yesterday's coalition of Labour and Liberal Democrats does not reach that threshold, but they are now increasingly confident of reaching some final agreed figure with the Conservatives, who want the budget increased by only 5.9 per cent.

Trevor Phillips, Labour member and deputy Assembly chair, said: 'Whatever happens, there are 22 Assembly members out of 25 who do not want the Mayor to increase his budget by any more than 12 per cent. I don't think the two-thirds majority will be hard to get in those circumstances.

"A 12 per cent increase would not mean the collapse of Ken's spending plans - he could press ahead with congestion charging if he wanted.

"He just has to realise that he cannot have all he asks for at once."