Metropolitan Police Commissioner Sir Bernard Hogan-Howe said that he was "shocked" by allegations that undercover officers hunted for information to smear the family of murdered teenager Stephen Lawrence.
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The Mayor of London said action was needed to "mitigate and palliate" the effects of the cuts on lowest income families.
The mayoral candidate said he believed the spike in knife crime and the restrictions imposed on police to stop and search are linked.
Dragos Moisica raped the victim on her 12th birthday in a hotel in Kenton. He has been jailed for 12 years.