Howard's tax warning to Londoners

Michael Howard today warned that Londoners faced massive tax rises if Labour was re-elected for a third term.

The Opposition leader said stamp duty, inheritance tax and council tax increases would hit those living in the capital hardest. His claims came as business leaders warned London could lose its "competitive-edge" unless it tackled skills shortagesand high office and housing costs. Mayor Ken Livingstone will publish a statement with the London CBI, London Chamber of Commerce and other groups to declare there is a real risk to the capital's economy. Mr Howard said it was a "scandal" people were penalised because they lived in the country's costliest city.