Mayor in Olympics row

Ken Livingstone has sparked a new row with firms over the compensation they are being offered to make way for the Olympics if London gets the Games.

He has accused them of inflating the number of jobs at stake and of attempting to hold the 2012 bid to ransom by demanding premium rates for their

land. The Mayor said some firms were seeking a "huge windfall".

Angie Bray, a Conservative member of the London Assembly, told the Mayor: "I think your tone is slightly unfortunate and does imply you regard them with distaste."

The Mayor

was criticised for a "hostile" approach to the negotiations with 307 firms based around Marshgate Lane in Stratford, near where the Olympic stadium and athletes' village would be built.

He said his London Development Agency was in "detailed private negotiations" with a number of firms in the runup to the 6 July decision on

the host city. If London wins, then the LDA will be able to compulsorily purchase the 250 acres of land required - with firms getting the "market value".

Businesses fear they will be forced out by 2007 - but have to wait five years for a land tribunal to decide on the amount of compensation they will receive because of log-jams in the system.