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.
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Workers' rights after Brexit? It's radio silence from the Tories

Theresa May promised to protect workers after leaving the EU. 

In her speech on Tuesday, Theresa May repeated her promise to “ensure that workers’ rights are fully protected and maintained".  It left me somewhat confused.

Last Friday, my bill to protect workers’ rights after Brexit was due to be debated and voted on in the House of Commons. Instead I sat and watched several Tory MPs speak about radios for more than four hours.

The Prime Minister and her Brexit Secretary, David Davis, have both previously made a clear promise in their speeches at Conservative Party conference to maintain all existing workers’ rights after Britain has left the European Union. Mr Davis even accused those who warned that workers’ rights may be put at risk of “scaremongering". 

My Bill would simply put the Prime Minister’s promise into law. Despite this fact, Conservative MPs showed their true colours and blocked a vote on it through filibustering - speaking for so long that the time runs out.

This included the following vital pieces of information being shared:

David Nuttall is on his second digital radio, because the first one unfortunately broke; Rebecca Pow really likes elephant garlic (whatever that is); Jo Churchill keeps her radio on a high shelf in the kitchen; and Seema Kennedy likes radio so much, she didn’t even own a television for a long time. The bill they were debating wasn’t opposed by Labour, so they could have stopped and called a vote at any point.

This practice isn’t new, but I was genuinely surprised that the Conservatives decided to block this bill.

There is nothing in my bill which would prevent Britain from leaving the EU.  I’ve already said that when the vote to trigger Article 50 comes to Parliament, I will vote for it. There is also nothing in the bill which would soften Brexit by keeping us tied to the EU. While I would personally like to see rights in the workplace expanded and enhanced, I limited the bill to simply maintaining what is currently in place, in order to make it as agreeable as possible.

So how can Theresa May's words be reconciled with the actions of her backbenchers on Friday? Well, just like when Lionel Hutz explains to Marge in the Simpsons that "there's the truth, and the truth", there are varying degrees to which the government can "protect workers' rights".

Brexit poses three immediate risks:

First, if the government were to repeal the European Communities Act without replacing it, all rights introduced to the UK through that piece of legislation would fall away, including parental leave, the working time directive, and equal rights for part-time and agency workers. The government’s Great Repeal Bill will prevent this from happening, so in that sense they will be "protecting workers’ rights".

However, the House of Commons Library has said that the Great Repeal Bill will leave those rights in secondary legislation, rather than primary legislation. While Britain is a member of the EU, there is only ever scope to enhance and extend rights over and above what had been agreed at a European level. After Brexit, without the floor of minimum rights currently provided by the EU, any future government could easily chip away at these protections, without even the need for a vote in Parliament, through what’s called a "statutory instrument". It will leave workers’ rights hanging by a thread.

The final change that could occur after we have left the EU is European Court rulings no longer applying in this country. There are a huge number of rulings which have furthered rights and increased wages for British workers - from care workers who do sleep-in shifts being paid for the full shift, not just the hours they’re awake; to mobile workers being granted the right to be paid for their travel time. These rulings may no longer have legal basis in Britain after we’ve left. 

My bill would have protected rights against all three of these risks. The government have thus far only said how they will protect against the first.

We know that May opposed the introduction of many of these rights as a backbencher and shadow minister; and that several of her Cabinet ministers have spoken about their desire to reduce employment protections, one even calling for them to be halved last year. The government has even announced it is looking at removing the right to strike from transport workers, which would contradict their May’s promise to protect workers’ rights before we’ve even left the EU.

The reality is that the Conservatives have spent the last six years reducing people’s rights at work - from introducing employment tribunal fees which are a barrier to justice for many, to their attack on workers’ ability to organise in the Trade Union Act. A few lines in May’s speech doesn’t undo the scepticism working people have about the Tories' intentions in this area. Until she puts her money where her mouth is, nor should they. 

Melanie Onn is the Labour MP for Great Grimsby.