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Ken Livingstone today announced he will “declare independence” for London if he wins the race to be Mayor.

The Labour candidate said he wants to take over the capital’s NHS, housing and benefits system if elected on May 3.

Mr Livingstone — campaigning in Croydon — said he would persuade the Government to “devolve everything”.

In extraordinary comments, he told the Standard he will use “amazing charm and subtlety” to get New York-style independence for the capital. Mr Livingstone, 66, added: “I would actually declare independence and run the whole city. They can’t even run hospitals in London. Everything government does in London it gets wrong. If you look at the city of New York, the mayor runs the benefits system, some of the prisons even, and the healthcare and schools.

“I’ve watched all my life, irrespective of which government... ministers trying to run hospitals from Whitehall. It’s just too big, too complicated. I’m in favour of devolving everything — not just in London. I think you should have strong regions as well.”

The former Mayor added: “I would always say, to this government and also the next Labour government of Ed Miliband, devolve more down. I’d like to take over our NHS immediately. I would like to take over a major house-building programme, I’d like to run the benefits system.”

Mr Livingstone’s announcement came amid a growing row over allegedly anti-semitic comments he made to a group of Jewish community leaders.

He had to go on the defensive after a group of Jewish Labour supporters wrote to party leader Mr Miliband warning him that Mr Livingstone risks losing vital support because of alleged comments that “rich Jews” would never vote for him.

The ex-Mayor’s comments on declaring London independent were immediately seized on by opponents.

A spokesman for Boris Johnson’s re-election campaign said: “Ken Livingstone showed during his time in office that he couldn’t be trusted to manage Londoners’ money.

“It has taken Boris Johnson four years to turn around the financial mess left by Mr Livingstone and his cronies.

“But this progress and investment would be put at risk if Mr Livingstone is re-elected. Do Londoners really want the NHS run by a man who wasn’t even trusted by his own government to upgrade the Tube?” Mr Livingstone was speaking to the Standard in Croydon alongside Mr Miliband at the launch of his Fare Deal Express battle bus.

The remarks about independence were first made in a video interview with Radio Taxis chairman Geoffrey Riesel, released today. Mr Livingstone then told the Standard that he wanted a New York-style democracy.

Mr Miliband was forced to defend his party’s mayoral candidate today after the anti-semitic language allegations.

It is claimed Mr Livingstone made the comments while meeting Labour supporters in the Jewish community. They alleged that he used the word “Zionist” as an insult and confused the label “Israeli” with “Jew”. The group wrote to Mr Miliband, warning him that Mr Livingstone now faces losing vital support in election race.

The letter said: “Ken, towards the end of the meeting, stated he did not expect the Jewish community to vote Labour as votes for the Left are inversely proportional to wealth levels, and suggested that as the Jewish community is rich we simply wouldn’t vote for him.”

Mr Livingstone’s spokesman today denied that the mayoral candidate had made the “rich Jews” comment.

And Mr Miliband said: “I know Ken Livingstone well. He doesn’t have a prejudiced bone in his body. He is attracting people of all faiths, backgrounds and religions to his campaign.

“He is someone who has fought prejudice his whole life and I am sure that is what he will continue to do.”

Former Labour MP Andrew Dismore, who is standing in Barnet and Camden for the London Assembly, said that, if true, Mr Livingstone’s remarks about Jews were “rather offensive”.