The Greater London Assembly Liberal Democrat Group voted this week to accept the Mayor’s reduced budget increase of 15.24 per cent but warned Ken Livingstone that he must start delivering on his promises.

This reduction from the Mayor’s original proposal of a 35 per cent increase means that rather than paying £1 a week, the council taxpayer in a Band D house will be asked for an extra 44p per week (£173.88 per year).

Graham Tope, Leader of the Liberal Democrats for the Greater London Assembly, said: "This is a substantial victory for the London Assembly.  After weeks of petulant protests from the Mayor that he couldn’t contemplate reining in his profligate spending plans, we have now forced him to reduce his budget by more than half that he originally proposed.

"The Mayor did not convince us of the justification for his original precept increase of £1 a week.  However, his amended budget will enable him to deliver all his plans for London, without hitting Londoners where it hurts – in their pockets."

Sally Hamwee, Chair of the London Assembly, said: "The Mayor’s spending has had a brake put on it by the London Assembly.  The budget allows for considerable investment in public services… but looks for value for money at the same time."

The money raised from the precept will help to pay for:

• Better public transport throughout London
• Better road maintenance throughout the capital
• Curbing congestion in central London
• An extra 1000 police on London’s streets
• Extra investment to make public transport safer
• Improvements to the environment.

By contrast, the Conservative Group proposed a budget that would have had quite the opposite effect if agreed.

A Tory budget for London would have:

• Meant fewer improvements in London’s bus network

• Forced the abandonment of any attempts to reduce congestion in the capital

• Taken police off our streets
• Curtailed measures to protect public transport users

• Curtailed strategies designed to improve London’s environment.

Graham Tope said: "The Tories’ proposals for the Mayor’s budget would have led to real cuts in the public services. If we had supported them, we would have returned London back to the dark ages of Tory under-investment in our capital’s infrastructure.

"It’s yet more proof that the Tory Party will never charge.  Their sole intention is to cut taxes – and cut public services"

Graham Tope warned: "The Mayor has been entrusted with London taxpayers’ money – he must now prove that he can spend it wisely and effectively."

This view was backed by the Evening Standard, which said: "The GLA deserves credit for forcing Mr Livingstone to behave responsibly. The Mayor is still on trial. He must prove he can spend money sensibly before he makes any attempt to extort yet more from the public."