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.
Getty
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You may call me a monster – but I'm glad that girl's lemonade stall got shut down

What's wrong with hard-working public servants enforcing perfectly sensible regulations?

Who could fail to be moved by the widely shared tears of a five year old whose innocent lemonade stall was brutally shut down by evil bureaucrats? What sort of monster would not have their heartstrings tugged by the plaintive “I've done a bad thing” from a girl whose father tells us she “just wanted to put a smile on people's faces”?

Well me, actually.

There are half a million cases of food poisoning each year in the UK, and one of the reasons we have stringent controls on who can sell food and drink, especially in unsealed containers, is to try to cut those figures down. And street stalls in general are regulated because we have a system of taxation, rights and responsibilities in this country which underpins our functioning society. Regulation is a social and economic good.

It’s also pretty unfair to criticise the hard-working public servants who acted in this case for doing the job they are no doubt underpaid to do. For the council to say “we expect our enforcement officers to show common sense” as they cancelled the fine is all very well, but I’m willing to bet they are given precious little leeway in their training when it comes to who gets fined and who doesn’t. If the council is handing out apologies, it likely should be issuing one to its officers as well.

“But these are decent folk being persecuted by a nanny state,” I hear you cry. And I stand impervious, I’m afraid. Because I’ve heard that line a lot recently and it’s beginning to grate.

It’s the same argument used against speed cameras and parking fines. How often have you heard those caught out proclaim themselves as “law-abiding citizens” and bemoan the infringement of their freedom? I have news for you: if you break the speed limit, or park illegally, or indeed break health and safety or trading regulations, you are not a law-abiding citizen. You’re actually the one who’s in the wrong.

And rarely is ignorance an excuse. Speed limits and parking regulations are posted clearly. In the case of the now famous lemonade stand, the father in question is even quoted as saying “I thought that they would just tell us to pack up and go home.” So he knew he was breaking the rules. He just didn’t think the consequences should apply to him.

A culture of entitlement, and a belief that rules are for other people but not us, is a disease gripping middle Britain. It is demonstrated in many different ways, from the driver telling the cyclist that she has no right to be on the road because she doesn’t pay road tax (I know), to the father holding up his daughter’s tears to get out of a fine.

I know, I’m a monster. But hooray for the enforcers, I say.

Duncan Hothersall is the editor of Labour Hame