: GREATER London Council suffered a severe body blow on
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sday this week, when the Court of Appeal ruled that London 'sport's cheap fares, subsidised on the rates, are unlawful.
[rd Denning and two other es held unanimously that ruling Labour group of the had exceeded its powers in ng fares by over 25 per cent, levying an extra rate to pay le reduction.
[e judges said that the GLC's rs to London boroughs to a 6.1p in the E supplemenrate should be quashed, but have given the council a to appeal to the House of s, and the subsidised fares, cornerstone of the Labour 's policies, stand meantime. rd Denning said: "I realise must cause much conster)n to the GLC and LT, and will be at their wits end about what to do. But it is their own fault."
The ruling was a victory for the Conservative-controlled Bromley Council in its battle against rate increases. Last week, two High Court judges ruled that the GLC had acted within its powers (CM, November 7).
Lord Denning said that the actions of the GLC in introducing cheaper fares were not within its statutory powers, and were null and void, and he laid much of the blame on GLC leader Ken Livingstone who, he said, had no authority to order LT to cut the .fares.
The Labour council had been wrong, placing too much weight on the fact that it was elected after issuing a manifesto which included a proposal to cut fares.
"In giving such weight to the manifesto, the council was under a complete misconception," said the judge.
Lord Denning said the GLC had, by law, to hold the balance fairly between ratepayers and the travelling public who used LT. "I hold that the GLC did not hold the balance fairly. A 25 per cent cut was more than fair to the travellers and less than fair to the ratepayers.
"This is a gift to travellers from outside London. They got the cuts without having to pay for it in rates. Thousands of ratepayers pay the extra rates and never use the buses and tubes. It is positively penal to make ratepayers pay for cuts for people who come from far and wide."
Lord Justice Watkins said the fares scheme was a "crude abuse of power" and was "hasty, unlawful, and arbitrary".
Speaking after the judgement, Ken Livingstone said he was confident that the House of Lords would overturn the Appeal Court's findings, but warned that London would face "very, very high fares" if it does not.
Transport Secretary David Howell, who has underlined the Government's view that cheap fares should not be subsidised from public funds, refused to comment on the Appeal Court's findings pending the House of Lords hearing.