MASSED ANGER... Irate ratepayers outside Waltham Forest Town Hall call for the resignation of the council. Evening Standard picture: CLIVE HO

LABOUR councillors today cast aside calls for their resignation and insisted a 62 per cent rates rise would remain, despite a mass rally against the increase.

Mr Bill Dennis, deputy leader of Waltham Forest Council disappointed thousands of ratepayers at the town hall when he declared: " We are not going to back down."

As he spoke residents were preparing a last ditch legal challenge to the Increase In the High Court. They >were also asking the local government district auditor to intervene.

Mr Alan Crown, spokesman for the Waltham Forest Ratepayers Group, said today: "We didn't hold out much hope of persuading the council to overturn its decision and restore the rates to a reasonable level.

Hope

" Legal action is now our only hope of making the council see sense."

Labour councillors were jeered and there were shouts of " out, out, out" when 6000 demonstrators surrounded the town hall as the annual mayor making ceremony was held inside.

Ratepayers were furious that Labour members had refused to address the rally, which followed a similar protest nearly a month ago.

But Labour leader Neil Gerrard and some senior colleagues agreed to meet a deputation before the mayor making meeting started.

Mr Dennis expressed sympathy with ratepayers but said: "We understand nobody likes having a large Increase in rates.

" But nobody likes being homeless or having their children sent home because there aren't enough teachers."