BAIL OUT FOR LONDON NEEDED TO STOP COUNCIL TAX ROCKETING

1.00.00pm GMT Tue 18th Nov 2003

Commenting on Mayor Livingstone's admission during his weekly press conference that Council Tax will have to rise if the Government does not bail London out of its' financial black hole, Simon Hughes, Liberal Democrat Mayoral candidate said:-

"Without a bail out from Ministers in Whitehall, Mayor Livingstone's I spend now, you pay later proposals will leave Londoners smarting from another big rise in their Council Tax.

"Ministers have repeatedly warned that there will be no bail out for the Mayor and his plans for transport, policing and housing in the Capital. Londoners want the next Mayor of London to tell the truth, balance the budget and not promise services they cannot deliver."

ENDS

Notes to editors

The Draft Financial Settlement for London is expected to be announced by Ministers tomorrow (Wednesday 19th November 2003)

Labour Transport Minister Tony McNulty MP, has maintained on several occasions that there will be no more money allocated to the London budget. His latest statement was made on Friday 17th October 2003.