By TESSA CUNNINGHAM and MARK WHITTET

MORE than 5,000 people marched on a town hall last night as a loony left council put up its rates by a whopping 62.3 PER CENT.

Fists flew and extra police were drafted in as Labour-run Waltham Forest imposed the highest rates in London--321p in the pound.

It puts the average rates bill up by more than £7 a week.

Traffic for miles around the East London town hall was brought to a standstill by the angry crowd of banner-waving demonstrators.

Madness

Ratepayers' spokesman John Anderson said: "This rise is going to crucify local businesses and turn this borough into an economic wasteland."

Pensioner Kathleen Collins, 70, said: "I'm absolutely disgusted-- the Labour council are flying in the face of public opinion.

"I just cannot afford to pay the rise--my pension certainly isn't going up by anything near 62.3 per cent."

Many domestic ratepayers--who unlike businesses will face rates of 302.5p in the pound--have vowed not to pay the massive increase. The average rates rise in London this year is seven per cent.

LABOUR lost a seat they have held for 47 YEARS to the SDP-Liberal Alliance in a by-election last night. They were beaten into third place in Lewisham. South London, as the Alliance swept in with a swing of 25 per cent.

And in Liverpool, Liberals romped home in Labour's "safe" St Mary's ward.