"Improvement of public services must be linked to increased powers for devolved government in London, Scotland, Wales and the establishment of English regional assemblies."

Privatisation and the abolition of local democracy failed - and indeed made matters worse

Ken Livingstone Mayor of London

Chancellor Gordon Brown has repeatedly stressed that the extra funding for the NHS announced in his pre-Budget report would be accompanied by further reform to ensure taxpayers got value for money.

Mr Livingstone said the Greater London Authority (GLA) based its public service approach on "democratic control and openness guiding strong management".

Post-war governments had operated a "behind closed doors" approach to local government and nationalised industries which had removed the decision-making process from democratic checks and controls, Mr Livingstone said.

Mistake

He said: "The course of privatisation and the abolition of local democracy pursued under Mrs Thatcher's government offered no real solutions to the continuing weaknesses of public services."

"They failed - and indeed made matters worse. It would be a mistake to continue down that path."

Mr Livingstone launched a manifesto for the reform of public services in London and he pointed to what he regarded as GLA successes since it was established 18 months ago.

Gordon Brown wants NHS reform

Bus usage was up 6%, the Metropolitan Police has been awarded funding to recruit an extra 1,050 officers and the GLA had become one of London's "most ethnically and gender-representative work forces", the mayor added.

Saturday's conference was on devolution, democracy and public and private sector involvement in public services.

It was also attended by Liberal Democrat leader Charles Kennedy, TUC General Secretary John Monks, Transport for London Commissioner Bob Kiley and the Scottish Executive's Tourism, Culture and Sport Minister, Mike Watson.