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Ken Livingstone will be handed a tax-free payout of £30,000 should he fail in his bid to be reelected as Mayor of London, under measures buried within the Budget literature.

Budget Note 61, which is hidden on page 149 of the new measures, allows for payouts to members of the Greater London Assembly to incorporate a tax-free chunk. Should Mr Livingstone lose the election he will be entitled to 50 per cent of his £137,579 salary under a new “resettlement grant scheme” approved by GLA members three weeks ago. Mr Livingstone’s opponents accused Mr Darling of ensuring that Mr Livingstone had a “soft landing”.

Brian Paddick, the Liberal Democrat candidate, said: “It’s nice to see Labour looking after its own, giving the outgoing mayor nondom status.”

The Treasury insisted, however, that the measures were a tidying-up exercise. A spokesman said: “Similar measures apply to people in any job. This is just bringing the GLA and the Mayor of London into line with what is common practice for other people.”

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