Londoners face 36% tax hike

Ken Livingstone is likely to ask for more taxes

Ken Livingstone has delivered his third budget as London mayor with the focus on getting more police on the streets and an investment in buses.

But Londoners face an average 36% council tax increase, which represents about £62 more a year for those in band D.

The London Conservative Party says the latest proposals mean the average council tax has gone up 92% since Mr Livingstone became mayor.

Last year Mr Livingstone was forced to cut his planned £53-a-year council tax rise to £22.88, for those living in homes valued in the B and D bands.

Daunting task

The budget, which will now go out for consultation, promises at least 1,200 more police officers as well as 160 police community support officers.

This will bring total police numbers in London to over 30,000 by March 2004.

Ken Livingstone said: "Over the last 15 months police have faced a particularly daunting task in the front line of protecting Londoners against terrorism as well as combating crime.

"Continued investment in more police is essential to equip them to meet these twin challenges.

Eric Ollerenshaw: "I am staggered by the budget"

Talking about transport, he said: "This budget provides the resources for the third year of a five-year programme of bus contract improvements concentrating this time on South London.

"The next year will also see the introduction of cashless buses in parts of central London to speed boarding times."

The mayor's 2003/4 budget requirement is £2,710.7m and the amount of the council tax paid to the GLA by a band D household will be £236 under the proposals.

Mr Livingstone said: "The budget and business plan proposals that have been developed in close cooperation across the GLA Group result in an increase in the budget requirement of about 10%.

'Propaganda'

"However, given the scale of service improvements delivered by my budget - and especially the large increase in police numbers and further major bus and transport improvements - I believe that Londoners will be willing to pay the extra £1.20 a week in a typical (band D) property that the overall budget proposals will cost local taxpayers."

But GLA Conservative leader Eric Ollerenshaw told BBC London: "I am absolutely staggered by the budget proposals.

"Nobody would disagree that we need more policemen and better buses but what we want is greater efficiency - and not money spent on congestion charging and propaganda."

The consultation document will be sent to all London councils and the Association of London Government.

The consultation period ends on 14 January 2003.