'Drunk on power' Ken admits he has a private fiefdom

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The Mayor conceded that he operated a "personal fiefdom" in the capital but said the system had proved very effective in getting things done. He insisted there was nowhere for him to hide from London's voters if things went wrong - and they could kick him out on 1 May if they were not happy.

Mr Livingstone admitted yesterday that he had suffered the "worst week" of his mayoral term after a string of sleaze allegations centred on his race adviser Lee Jasper. But Mr Livingstone was bullish on Radio 4's Today programme this morning.

Asked if he enjoyed a personal fiefdom, the Mayor said: "That's exactly what Tony Blair - and I was opposed to the idea at the beginning - set out to create." He added: "I am accountable to Londoners; I can't blame anybody else if it's going wrong."

He said it was right that his senior staff should be able to campaign for him politically in their own time and without using public money

Mr Livingstone's rivals responded by calling for his powers to be curbed. Tory mayoral candidate Boris Johnson said: "Never mind the whisky, Ken Livingstone is clearly drunk on power."

Lib Dem candidate Brian Paddick said: "Mayor Livingstone effectively said this morning that he is entitled to act like a dictator because the law allows him to."

Mr Livingstone spoke out after Labour MP Kate Hoey - one of a cross-party group demanding an inquiry into the London Development Agency - said the Mayor's inner circle had become too powerful.

Mr Livingstone has defended the role of Mr Jasper, saying he would trust him "with his life".

The allegations centre on cash granted by the LDA to a string of organisations run by friends or associates of Mr Jasper, largely without any results to show for the money spent. A police investigation into what happened to the cash at four of the companies is under way.

Mr Jasper's deputy Rosemary Emodi resigned this week after lying about accepting a free trip to Nigeria. Mr Livingstone denied Mr Jasper knew about the trip, saying: "I was the one that broke the news to Lee... he was devastated."