Under Boris and the Tories, London is becoming a divided city

Falling real wages and inflation-busting price rises mean that having a job is no longer a secure route to escaping poverty in the capital.

A new report released today shows that the government and Mayor are turning London into a divided and segregated city. The London Poverty Profile shows that a third of Londoners now live in poverty and, even more staggeringly, an increasing majority of those in poverty are actually in work. Having a job no longer guarantees that you can afford to live in the capital. As London’s business and cultural spheres successfully compete around the world, ordinary Londoners have been left behind. Ever fewer are able to enjoy the benefits that living in a global city provides – having to walk past galleries, theatres, stadiums and restaurants that are completely out of their reach. It is up to the government and Mayor of London to reverse this. No one should be left behind as London grows and prospers in the decades ahead. We simply cannot win the global race unless we compete as one united city, with everyone enjoying the benefits of London’s success.

The London Poverty Profile makes truly worrying reading. Of the one in three Londoners who now live in poverty, two out of three are in work. The number of people in 'in-work poverty' has risen by almost half a million since 2001. The numbers of those working part-time because they can’t find full-time work has doubled in just five years. Falling real wages and inflation-busting price rises under this government mean that having a job is no longer a secure route to escaping poverty in London. The report exposes the scam behind the government’s claim to be 'making work pay' – work pays less in London today than at any time for generations. It also shows that the government’s divisive attempt to pit those in work against those looking for work is completely baseless – quite simply, more people in poverty have a job than don’t.

Why is this happening? Wages have completely failed to keep pace with the cost-of living in London. The cost of rent rose by 9% last year alone and house prices by 8%. Energy bills are on average £300 a year higher than in 2010. The cost of single bus journey has increased by 56% under Boris Johnson and a zone 1-6 travel card in £440 a year more than when he became Mayor. Water bills rose by 3% above inflation since 2010 and are set to increase by another 8% by 2015. At the same time, real wages are falling. Wages rose by the smallest level since records began in the first quarter of this year and one in five Londoners are paid below the Living Wage. As essential bills take up an ever higher percentage of Londoner’s salaries, tens of thousands of hard working families have been pushed into poverty.

The government and Mayor have done nothing but make the situation worse. My friends and neighbours know that living standards have fallen for 38 consecutive months since David Cameron’s government got into power: they see it when their wages run out earlier each month, when they can no longer afford to keep their homes warm and when they are having to walk to work because they can’t afford the tube or bus. There has been no action to tackle the increasing cost of housing in London. In fact, the Mayor recently increased the cost of affordable housing to 80% of market rate which is simply out of reach for most Londoners. Poverty in outer London is growing fast as central London rents have become unaffordable, and the number of people in poverty living in the private rented sector has doubled since 2003. The Mayor has also increased the cost of commuter travel which is now the most expensive in the world. There has been no action to tackle rising gas and electricity bills and the government have clearly taken the side of the 'big six' providers over ordinary Londoners. And when Thames Water recently asked for permission to increase their bills by 8% over two years - the Mayor of London didn’t say a word about it.

Londoners need action now. On housing, the government need to match Labour’s commitment to build 200,000 new homes a year by the end of the next Parliament, with the majority in and around London. Action must be taken to tackle rip-off letting agent fees, and to look at what can be done to bring rents under control. On travel, the Mayor must commit to freezing fares at least at the rate of inflation for 2014. He can afford to do so; all that is missing is the political will. On the Living Wage, it is time the Tories began matching words with action. Ten Labour councils are now Living Wage employers, while not a single Conservative council is accredited. Living Wage Councils are working to persuade local employers to pay the living wage– crucial to raising wages. The government needs to look properly at Rachel Reeves’s suggestion of Living Wage Zones and whether we can offer incentives for businesses in London to pay the Living Wage. And on water bills, the Mayor needs to do his job and stand up for ordinary Londoners by saying publicly and unequivocally that it is simply not acceptable for Thames Water to raise their bills above inflation yet again in the middle of a cost-of-living crisis.

It is not just those left impoverished by this government and Mayor that are paying the price. The creation of a divided city is damaging London’s ability to compete with other global cities. Last year, for the first time ever, the CBI cited the cost of housing as the biggest barrier to growth in London. Four out of five London employers say the lack of affordable housing is stalling growth in the capital and Vodafone recently reported it was struggling to attract middle-managers to their London office because of the high cost of living. The Mayor is off on his travels again this week - he is in China on a business delegation. However, his attempts to attract foreign investment, business and jobs to London cannot be successful unless he fixes the cost-of-living crisis closer to home that he and his government are presiding over.

This report should act as a wake-up call to Boris Johnson and David Cameron. Their cost-of-living crisis is having a catastrophic effect on our city. It is causing untold misery to millions of Londoners and damaging our ability to compete on the global stage. They must now act to ensure no more Londoners get left behind.

Sadiq Khan is Shadow London Minister and MP for Tooting

Boris Johnson speaks to members of the press during a media conference in London on July 25, 2013. Photograph: Getty Images.
Sadiq Khan is MP for Tooting, shadow justice secretary and shadow minister for London.
Ukip's Nigel Farage and Paul Nuttall. Photo: Getty
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Is the general election 2017 the end of Ukip?

Ukip led the way to Brexit, but now the party is on less than 10 per cent in the polls. 

Ukip could be finished. Ukip has only ever had two MPs, but it held an outside influence on politics: without it, we’d probably never have had the EU referendum. But Brexit has turned Ukip into a single-issue party without an issue. Ukip’s sole remaining MP, Douglas Carswell, left the party in March 2017, and told Sky News’ Adam Boulton that there was “no point” to the party anymore. 

Not everyone in Ukip has given up, though: Nigel Farage told Peston on Sunday that Ukip “will survive”, and current leader Paul Nuttall will be contesting a seat this year. But Ukip is standing in fewer constituencies than last time thanks to a shortage of both money and people. Who benefits if Ukip is finished? It’s likely to be the Tories. 

Is Ukip finished? 

What are Ukip's poll ratings?

Ukip’s poll ratings peaked in June 2016 at 16 per cent. Since the leave campaign’s success, that has steadily declined so that Ukip is going into the 2017 general election on 4 per cent, according to the latest polls. If the polls can be trusted, that’s a serious collapse.

Can Ukip get anymore MPs?

In the 2015 general election Ukip contested nearly every seat and got 13 per cent of the vote, making it the third biggest party (although is only returned one MP). Now Ukip is reportedly struggling to find candidates and could stand in as few as 100 seats. Ukip leader Paul Nuttall will stand in Boston and Skegness, but both ex-leader Nigel Farage and donor Arron Banks have ruled themselves out of running this time.

How many members does Ukip have?

Ukip’s membership declined from 45,994 at the 2015 general election to 39,000 in 2016. That’s a worrying sign for any political party, which relies on grassroots memberships to put in the campaigning legwork.

What does Ukip's decline mean for Labour and the Conservatives? 

The rise of Ukip took votes from both the Conservatives and Labour, with a nationalist message that appealed to disaffected voters from both right and left. But the decline of Ukip only seems to be helping the Conservatives. Stephen Bush has written about how in Wales voting Ukip seems to have been a gateway drug for traditional Labour voters who are now backing the mainstream right; so the voters Ukip took from the Conservatives are reverting to the Conservatives, and the ones they took from Labour are transferring to the Conservatives too.

Ukip might be finished as an electoral force, but its influence on the rest of British politics will be felt for many years yet. 

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