Capital spending

Londoners face a 9.9 per cent tax rise to pay for better transport, more police and extra fire fighters.

Ken Livingstone revealed on Wednesday that he expects people in the Capital living in Band D households will face 44 pence a week rises in the council tax precept that pays for the Greater London Authority's budgets.

The rise for band D to £247 a year will cover costs in transport, police funding and modernising the fire service.

The mayor defended the rise in what will be the last budget ahead of the London elections in June.

"I believe that Londoners will support this continued investment in making London a safer city and improving its transport systems," he said.

His centrepiece policy is to increase police numbers to 35,000.

Livingstone outlined his plans when he presented his draft budget for the Capital to London assembly members.

But Livingstone, who was returned to the Labour Party fold earlier this month, has already found himself at odds with the government.

Ahead of the statement he criticised the government's funding for policing in the city.

"This year the government is proposing an almost flat rate percentage increase for police services," he said.

"If the grant formula had not been restricted in this arbitrary way there would be an extra £56 million to fund police services in the Capital. In effect this sum has been distributed to other police authorities to help keep their council tax increases down.

"It is unfair to London council tax payers that the government should over-ride its own needs-based formula, which was revised only last year. It erodes the benefit that they could expect to derive from Met's vigorous pursuit of savings and efficiencies that I have encouraged and supported."

Livingstone's political opponents challenged his spending plans.

Liberal Democrat mayoral candidate Simon Hughes questioned whether London's taxpayers were getting a good deal.

"Londoner's council tax has doubled with the mayor's 'I spend now, you pay later' policies. We must now ask if we are getting value for money from Mr Livingstone," he said.

Conservative candidate Steve Norris said Livingstone was wasting money.

"Londoners understand very well what the cost of Livingstone means for them - ever higher council taxes," he said.

"Livingstone is like someone who has gone on a wild shopping spree on someone else's credit card but with nothing to show for it.

"And there is more bad news to come with the threat of another four years of Livingstone's financial disaster.

"Despite the huge amounts of additional council tax, people simply do not feel safer on London's streets or that the tube network is any better."

Darren Johnson, the Green Party's mayoral candidate issued an alternative budget of his own, claiming he could offer taxpayers a rebate by cutting waste and road building."By slashing spending on road building, propaganda, and waste and increasing congestion charging revenue, we can double spending on pedestrian and cycling schemes, double spending on the bus improvement programme and double the environment budget," he said."Propaganda and spin is the hallmark of mayor Livingstone's administration. He is currently spending £2.8 million per year on the Londoner newspaper which he sends to every household. When it comes to real initiatives to improve people's quality of life, Livingstone fails to come up with the money."