Ken Livingstone is very left wing and like all socialists, believes in a lot of government (he has just decided it should be at a slightly different level). He believes in a big welfare state, nationalisation of all major industry and high levels of taxation.
He was also suspended from the Labour Party for anti-semetic comments.

Ken Livingstone doesnt believe in smaller government, he beieves in a lot more government,just at a diffferentlevel (ie the level at which he can govern)!!