Livingstone concedes Tube battle but vows the war is not over

The Mayor of London, Ken Livingstone, conceded defeat in a legal battle over the future of London Underground on Monday but promised to continue his fight against the plans.

While Mr Livingstone decided not to appeal against last month's High Court ruling, which clears the way for the partial privatisation of the Tube, he declared he would still "use all appropriate means" to fight the Government proposals. A statement signed by Mr Livingstone and his transport commissioner, Bob Kiley, paves the way for months of resistance as ministers attempt to cede responsibility for the London Underground infrastructure to private-sector groups.

Announcing his response to the refusal to allow a judicial review of the Government's public-private partnership (PPP), Mr Livingstone said his priority now was to ensure the publication of an independent Deloitte & Touche report that raises questions about the economic value of the strategy.

He pointed out that the Government had pledged not to conclude PPP agreements unless it could be proved that they could guarantee safety and value for money. "It has so far failed to make the case that either of these tests have been met," the statement said. Ministers had also sought to prevent publication of the Deloitte & Touche document.

The statement added: "The Government's proposed PPP represents an inherently unworkable management scheme by separating control of train operations from safety-critical maintenance activities.

"It sets the wrong priorities and provides inadequate control over the work of private contractors working in this essential public asset."

It was made clear that the decision to abandon litigation was based on legal advice that it was unlikely to succeed on the "narrow issue" decided by Mr Justice Sullivan in the High Court on 30 July. Mr Justice Sullivan ruled that Government policy took precedence over decisions of the Greater London Authority. Further legal action may be taken by the Mayor over the details of contracts.

Mick Rix, leader of the train drivers' union Aslef, said: "We always maintained the public-private partnership is best challenged and defeated politically. We hope this will still happen."

Bob Crow, assistant general secretary of the RMT rail union, said he was sure the withdrawal from the legal process was not "the last word" from the Mayor. "My union believes he still has the overwhelming support of Londoners to carry on fighting this wretched and ill-considered scheme," said Mr Crow.

Derek Smith, managing director of LU, said: "It's good to see this costly distraction behind us. What matters now is what mattered all along: getting 'pounds in the ground'."

The Transport minister, John Spellar, said: "We look forward to working with the Mayor and the other key players."