Livingstone allowed to continue Tube challenge

London mayor Ken Livingstone and Transport for London commissioner Bob Kiley have been granted permission to mount a new High Court challenge against the London Underground PPP.

Mr Justice Scott Baker has ordered an urgent hearing to take place over four days beginning on 23 July with the agreement of all sides.

Lord Lester of Herne Hill, QC, appearing for the mayor, applied for a quick hearing. He said: "Everyone agrees that it is in the compelling public interest, as well as in the interests of the commercial parties, that this should be expedited."

Livingstone is arguing that the PPP deal violates EU funding and procurement rules and that it will create a £1.5bn funding gap. He claims that if this gap is not met by government guarantees then it will mean a 25% hike in fares, increases in council tax, or cuts in other transport programmes.

The PPP plan proposes a £16bn investment in the Tube's infrastructure over 15 years. Two private consortia, Metronet and Tube Lines Group, will upgrade and maintain the track and signalling system for 30 years under the deal.