Labour’s red flag, which had flown over Islington Town Hall for five years, was dropped by council leader Margaret Hodge.

The party’s left-wing councillors ordered it to be flown when they gained control of the authority and elected Mrs Hodge leader.

But she said: “The days of flying banners from town hall windows and hoisting up red flags on the roof are over.”

Mrs Hodge said lefty Labour councils like Islington had become unpopular with voters – and that Prime Minister Margaret Thatcher had used this to her advantage in elections.

Meanwhile, organisers of a charity appeal to raise £20,000 for sick children at St Bartholomew’s told Islington’s big businesses: “You’re a mean bunch of skinflints.”

Firemen from Upper Street fire station raised £14,000. But one of the organisers, who was helping the crews, said: “People in the streets and small businesses dug deep and we’re very grateful. But it’s the big businesses that have let us down.”