Olympic tax hike challenged

London is bidding for the 2012 games

Mayor Ken Livingstone's political rivals are challenging his proposal to raise Londoners' council tax to help fund the Olympics.

Mr Livingstone and Olympic bid leader Barbara Cassani were questioned about the plan at a meeting of the London Assembly on Wednesday.

Conservatives say Londoners should not be asked to bear the cost of an event which will benefit the country and the money should come out of the "national purse".

But the mayor says the Olympic bid will bring big improvements to the city and tie the government to its success.

A proposal to raise the Olympic council tax precept to £550m over 12 years - an extra £20 per person - was discussed at the meeting.

Ms Cassani hopes to bring the Olympics to London

Eric Ollerenshaw, the assembly's Tory leader, said some Olympic events, such as yachting, show jumping and shooting, would be held outside London, but those areas were not expected to raise council tax.

He said: "We all want to see the Olympics in London, but I do not see why the over-taxed residents of London should have to fork out for them.

"London contributes £20bn more to the country than we receive back, yet in order to host a Games that will benefit the entire country we have to put our hands even deeper into our pockets."

But Mr Livingstone said: "Every pound that Londoners put in through council tax will be matched by £3 from the government or the National Lottery."

"[The government] has to make London work to make a success of the Olympics.

"I am hopeful now that over the next four or five years as we move towards the Olympics we will see a real transformation in this city."

London is bidding to host the 2012 Games alongside New York, Paris, Madrid, Moscow, Leipzig, Istanbul, Rio de Janeiro and Havana.

The International Olympic Committee will decide on the host in July 2005.