City Hall, home of the Greater London Authority, London Assembly and Mayor of London

Council tax has been cut for households in London by the Greater London Authority (GLA) – but at a modest one per cent, hard pressed Londoners may struggle to notice the difference.

The amount City Hall takes will drop by £3.01 to £306 for an average Band D property, it has been announced.

Council tax collected by City Hall has been frozen for the past three years.

What Lononders pay for with council tax also includes the police, fire brigade, the Olympics, and transport.

“Thanks to the sensible savings we have achieved over the last three years we can deliver on all our priorities and hand some money back to Londoners,” said Mayor Boris Johnson.

“I am proud to have ended eight years of relentless rises in council tax, freezing the precept for the last three years and now take this small step towards easing the burden further.”

Johnson’s rival in the race for City Hall, Ken Livingstone said that one per cent drop “would hardly pay for a single tube journey.”

During Mr Livingstone’s eight-year tenure as Mayor, the amount paid by householders to the GLA climbed by £963.58.

Labour’s veteran candidate has pledged to slash the cost of public transport by seven per cent if elected, in May. Bus tickets would be cut back to £1.20 - 2011 levels. Mr Livingstone claimed his measures will save up to £1,000.

“This is just £3.10 a year, whereas I will save Londoners on average £1000 over four years by cutting the fares on October 7th this year,” he said.

‘I believe in tough times Londoners need a Mayor who will cut the cost of living.”

Liberal Democrat’s candidate for City Hall, scoffed at the one per cent tax cut by City Hall.

Council Tax would come down by three per cent if the Lib Dem’s won City Hall, the former deputy assistant Commissioner said.

“As a Liberal Democrat Mayor I am determined to make a real difference to Londoners, not just token gestures.

“Whilst any reduction in council tax is welcome I’m not going to spend too long working out how I would spend my extra £3.10 a year.”