What the panellists said

NICK FERRARI, presenter of LBC 97.3fm breakfast show:

Mr Ferrari was highly critical of the Mayor on issues ranging from the congestion charge to crime.

He said London was a "divided city" and said he could not believe statistics which show crime in London is falling.

"I have never seen a city that is as divided as this one is today," he said. "One group of kids rush home from school in fear of their safety while other groups ride the buses the Mayor has provided for them terrorising people and stealing mobile phones. They are feral children."

The radio presenter said the Mayor needed to be clear about what the point of the congestion charge was and defended drivers' rights to use 4x4s without being charged £25 a day.

He said: "Some people have to drive large cars. For them it's not a luxury or a choice but a necessity. They might be a plumber and have to lug kit around or - and it's not a crime - they might want to tow a caravan.

"The main issue we need to address for London to stay ahead is that it is a city divided, but we are diverted by ridiculous sideshows such as bike lanes and even the 2012 Olympics when the city has never been in such a dangerous place."

The public transport network also came under fire. He said: "The Tube network is dangerous and falling apart and there are enough buses to be able to walk down the length of Oxford Street on their roofs."

KEN LIVINGSTONE, Mayor:

The Mayor took credit for improvements he had made to the capital since he came to power.

He conceded the congestion charge had a "pollution dimension" to it and blamed continuing congestion on work to replace water pipes by Thames Water.

"I would be mad to suggest that all London's success is down to the Mayor," he said. "But you would be mad to suggest it's nothing to do with it."

Mr Livingstone quoted figures showing that crime had been reduced in London, but said gangs had always been a problem in the city.

He said: "The perception is very different from the reality of crime. As soon as we rolled out more police officers back on the streets, crime started falling by six per cent every year. Police get to know the kids falling into trouble and the beat police officer can help divert them.

"Let's remember where we were 20 years ago. We had riots in this city."

He also said both the Greater London Authority and the Government would be putting £79 million into funding activities for young people to keep them off the streets.

And he added that the police had arrested 200 gun-carrying criminals last year thanks to local communities being increasingly willing to offer evidence.

Responding to claims the city was too expensive to live in and was forcing teachers and nurses to live elsewhere, the Mayor pointed to new rules about housing density.

He also pointed to his latest affordable housing strategy which would allow couples with a joint income of £35,000 to get onto the housing ladder in a part-rent, part-buy scheme.

The Mayor defended the congestion charge - including the western extension and the plan to make higher-emission cars pay £25 a day.

Mr Livingstone said: "We're not saying you can't drive. Buy a car - just not a large engine. I don't think that suddenly a lot of indignant people will go out and buy band-B cars so they can drive them through the congestion zone for free. If that happens we'll have to stop it."

DIANE ABBOTT, Labour MP for Hackney North and Stoke Newington:

Diane Abbott spoke of her love for the "Dick Whittington" city and defended public transport - even so far as to say she was one of the few who loved bendy buses.

She said: "One of the things that makes London a great city is the whole Dick Whittington idea that London is a place where people can come and find their fortune. London is a place you can come and follow your dreams.

"What makes London a great city is precisely its diversity. It's the energy, it's the buzz, which makes it such an exciting city to be in. I'm pleased to have lived here.

"The problems we have on the Underground, they are of Gordon's [Brown] making."

Ms Abbott did not pretend London streets were crime-free but said: "I'm not saying that there isn't danger on the streets but that is not just London. Fear of crime is a huge issue but doesn't correlate with actual crime.

"Gangs are a big issue and I won't pretend otherwise. There is the issue of better education.

"It's not going to be the children with four As at A-level who are going to be involved in gangs. It's also about home life which is a very complex issue."

Ms Abbott reiterated her invitation to Jacqui Smith to come and walk around Hackney after the Home Secretary said she would not feel safe there at night.

Ms Abbott addressed the issue of "non-doms" but faced some criticism from the audience after her comments regarding people coming to London to find their fortune.

She said she thought non-doms should be forced to pay tax but without any accountancy background did not want to speculate on how this should be done.

LIONEL BARBER, editor of The Financial Times:

"The London economy is one of the great success stories of the last 40 years," he said, adding: "There was a brief period when we all got a bit above ourselves and sold London as if it was going to be greater than New York.

"But there have been some big financial innovations. It's very important to understand the reason why the City has grown. It's increasingly because of people like me who believe in free markets.

"I wasn't expecting to be the only capitalist on the panel but the Mayor is actually a capitalist and has been incredibly supportive of the City.

"The most important thing is that we must remain open."

But Mr Barber's praise of the Mayor did not stretch to public transport. He said: "The Tube is a disgrace. It's not safe, it's overcrowded, it doesn't work and it's Victorian in every sense of the word. Why are there so many empty buses? There are too many of them."

Mr Barber also commented on the issue of non-doms. He said: "Those who live here should pay income tax. That is unquestionable."

But he said the system should also not discourage people from moving to London by taxing them too much in comparison to other cities.

He also questioned the Mayor's decision to extend the congestion zone west and said: "Why did the zone go west when all the rich people are living there and now escape the charge?"

When asked about his opinion of the London skyline, Mr Barber said as long as he could see St Paul's Cathedral from his office he was happy - and added to laughter that the "erotic gherkin" was his favourite building.