KEN Livingstone will redraft his budget after the London Assembly denounced proposals to add £66 to the average council tax bill.

The Mayor wanted to pay for an extra 1,200 police officers, offer half-price travelcards to 16 and 17-year-olds, invest in rail schemes and continue bus improvements while freezing fares.

But the 25-strong London Assembly told him increasing his precept by 38.4 per cent was unacceptable.

The precept is the proportion of council tax which funds police, the fire brigade, transport and City Hall.

The Conservative and Lib Dem groups in alliance are demanding Mr Livingstone reduce his precept increase to no more than 17.5 per cent.

Bob Neill, Tory London Assembly member for Bromley and Bexley, said: "The Conservative group could deliver 1,200 extra police, 500 community support officers, more CCTV on buses and improved bus networks with a 13.8 per cent increase through tighter budgeting.

The Labour group refuses to support the Lib Dem/Tory alliance and says the increase should be less than 30 per cent.

Len Duvall, Labour London Assembly member for Lewisham and Greenwich, said: "We want more police on our streets and to give the fire service proper equipment to tackle potential terrorist issues, such as chemical decontamination.

"There's a cost to pay for that but we can make savings by being less ambitious with the time-scale for other projects."

A spokesman for the Mayor said: "The Mayor will now work with Labour to come up with a sensible budget compromise which will protect the proposed transport and policing improvements."

Mr Livingstone now has three weeks to strike a compromise deal with the Assembly before it sets his budget on February 12.

January 28, 2003 11:30