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
Show Hide image

Leader: Trump's dangerous nation

From North Korea to Virginia, the US increasingly resembles a rogue state.

When Donald Trump was elected as US president, some optimistically suggested that the White House would have a civilising effect on the erratic tycoon. Under the influence of his more experienced colleagues, they argued, he would gradually absorb the norms of international diplomacy.

After seven months, these hopes have been exposed as delusional. On 8 August, he responded to North Korea’s increasing nuclear capabilities by threatening “fire and fury like the world has never seen”. Three days later, he casually floated possible military action against Venezuela. Finally, on 12 August, he responded to a white supremacist rally in Virginia by condemning violence on “many sides” (only criticising the far right specifically after two days of outrage).

Even by Mr Trump’s low standards, it was an embarrassing week. Rather than normalising the president, elected office has merely inflated his self-regard. The consequences for the US and the world could be momentous.

North Korea’s reported acquisition of a nuclear warhead small enough to fit on an intercontinental missile (and potentially reach the US) demanded a serious response. Mr Trump’s apocalyptic rhetoric was not it. His off-the-cuff remarks implied that the US could launch a pre-emptive strike against North Korea, leading various officials to “clarify” the US position. Kim Jong-un’s regime is rational enough to avoid a pre-emptive strike that would invite a devastating retaliation. However, there remains a risk that it misreads Mr Trump’s intentions and rushes to action.

Although the US should uphold the principle of nuclear deterrence, it must also, in good faith, pursue a diplomatic solution. The week before Mr Trump’s remarks, the US secretary of state, Rex Tillerson, rightly ruled out “regime change” and held out the possibility of “a dialogue”.

The North Korean regime is typically depicted as crazed, but its pursuit of nuclear weapons rests on rational foundations. The project is designed to guarantee its survival and to strengthen its bargaining hand. As such, it must be given incentives to pursue a different path.

Mr Trump’s bellicose language overshadowed the successful agreement of new UN sanctions against North Korea (targeting a third of its $3bn exports). Should these prove insufficient, the US should resume the six-party talks of the mid-2000s and even consider direct negotiations.

A failure of diplomacy could be fatal. In his recent book Destined for War, the Harvard historian Graham Allison warns that the US and China could fall prey to “Thucydides’s trap”. According to this rule, dating from the clash between Athens and Sparta, war typically results when a dominant power is challenged by an ascendent rival. North Korea, Mr Bew writes, could provide the spark for a new “great power conflict” between the US and China.

Nuclear standoffs require immense patience, resourcefulness and tact – all qualities in which Mr Trump is lacking. Though the thought likely never passed his mind, his threats to North Korea and Venezuela provide those countries with a new justification for internal repression.

Under Mr Trump’s leadership, the US is becoming an ever more fraught, polarised nation. It was no accident that the violent events in Charlottesville, Virginia, culminating in the death of the 32-year-old Heather Heyer, took place under his presidency. Mr Trump’s victory empowered every racist, misogynist and bigot in the land. It was doubtless this intimate connection that prevented him from immediately condemning the white supremacists. To denounce them is, in effect, to denounce himself.

The US hardly has an unblemished history. It has been guilty of reckless, immoral interventions in Vietnam, Latin America and Iraq. But never has it been led by a man so heedless of international and domestic norms. Those Republicans who enabled Mr Trump’s rise and preserve him in office must do so no longer. There is a heightened responsibility, too, on the US’s allies to challenge, rather than to indulge, the president. The Brexiteers have allowed dreams of a future US-UK trade deal to impair their morality.

Under Mr Trump, the US increasingly resembles a breed it once denounced: a rogue state. His former rival Hillary Clinton’s past warning that “a man you can bait with a tweet is not a man we can trust with nuclear weapons” now appears alarmingly prescient.

This article first appeared in the 17 August 2017 issue of the New Statesman, Trump goes nuclear