As well as fireworks there will be free public transport all night

Mayor Ken Livingstone announced a free fireworks display would be put on near the London Eye and there would be free public transport all night.

Mr Livingstone said tens of thousands of Londoners would enjoy the show.

But Bob Neil, leader of the London Assembly Tories, said Paris and New York always put on better events.

The event is being put on by Jack Morton Worldwide, which staged the opening and closing ceremonies for this year's Olympics in Athens.

What sort of example is that when our two main rivals are able to do so much better than we are? Bob Neil, London Assembly Tory Party

Viewing screens will be put on in Trafalgar Square, in central London, so revellers there will be able to enjoy the fireworks.

Mr Neil said: "If we are to be a serious contender for the Olympics we want to be able to show that London can put on a decent show.

"Paris and New York particularly always have very good events on New year's Eve, manage to do it safely and make it really enjoyable for everyone.

"What sort of example is that when our two main rivals are able to do so much better than we are?"

'Get home safely'

The London Assembly Liberal Democrats have also criticised the Mayor's plans, saying there should be a free, ticketed concert in Trafalgar Square with people filling the surrounding streets in viewing areas.

Dee Doocey, of the Lib Dems, accused the mayor of coming up with a plan which was more suited to television than people celebrating in the capital.

Mr Livingstone said: "I want Londoners to celebrate New Year's Eve in any way they wish and be able to get home safely.

"The display will be seen by tens of thousands of Londoners around the viewing area and be visible in other parts of the city.

"It would be a great mistake to invest two or �3m on something in the middle of Trafalgar Square and find that the whole thing is put off by the weather.