Boris erupts at Ken

"You're a fucking liar," Johnson tells Livingstone after exchange on tax avoidance.

Boris Johnson and Ken Livingstone's relationship appears to have reached a new level of fractiousness. The Guardian's Hélène Mulholland reports that "Boris went nose to nose with Ken in a small lift and told Ken three times: "You're a fucking liar, you're a fucking liar, you're a fucking liar."

The mayor's outburst, since confirmed by Livingstone's team, was prompted by an exchange on tax avoidance during the LBC hustings. Livingstone alleged that Johnson, like him, had set up a company called "Finland Station" to channel his income payments, a claim the mayor flatly denied.

Here's the statement Team Johnson has issued:

My salary as Mayor is taxed as an employee of the GLA. In the same way as when I was an MP my salary was taxed as an employee. Any other income that I have received from outside endeavours has been received on a self-employed basis, to me as an individual (no company or other structure has been involved). No income earned by me has ever been paid to a "service" company, through which a person or person's freelance earnings can be channelled so that they pay corporation rather than income tax.

To suggest otherwise is a complete and utter fabrication.

Of course the real point is not about my tax arrangements. It is about the hypocrisy of a man who for years has railed against those who use special arrangements to reduce their tax and who has then been caught – bang to rights – doing the very same thing himself.

No love lost: Mayor of London Boris Johnson and Ken Livingstone. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Westminster terror attack: What we know so far

The attack, which left a police officer and bystanders dead, was an attack on democracy. 

We had just wrapped up recording this week's podcast and I was on my way back to Westminster when it happened: the first terrorist attack on Parliament since the killing of Airey Neave in 1979. You can read an account of the day here.

Here's what we know so far:

  • Four people, including the attacker, have died following a terrorist attack at Westminster. Keith Palmer, a police officer, was killed defending Parliament as the attacker attempted to rush the gates.
  • 29 people are in hospital, seven in critical condition.
  • Three French high school students are among those who were injured in the attack.
  • The attacker, who was known to the security services, has been named as Khalid Masood, a 52-year-old British born man from Birmingham, is believed to have been a lone wolf though he was inspired by international terrorist attacks. 

The proximity of so many members of the press - including George, who has written up his experience here - meant that it was very probably the most well-documented terrorist attack in British history. But it wasn't an attack on the press, though I'd be lying to you if I said I wasn't thinking about what might have happened if we had finished recording a little earlier.

It was an attack on our politicians and our Parliament and what it represents: of democracy and, ultimately, the rights of all people to self-determination and self-government. It's a reminder too of the risk that everyone who enters politics take and how lucky we are to have them.

It was also a reminder of something I take for granted every day: that if an attack happens, I get to run away from it while the police run towards it. One of their number made the ultimate sacrifice yesterday and many more police and paramedics had to walk towards the scene at a time when they didn't know if there was another attacker out there.

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.