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

My latest Brexit worry? What will happen to our footballers

My week, from why we should “keep on running” to mansplaining in the Commons.

It’s a funny old game, politics. Just when you think you’ve got your head round the myriad consequences of the Brexit vote, yet another one springs to mind. This week, I stumbled upon another sector in which Britain leads the world that will be thrown into uncertainty by Brexit: football.

The background of this moment of clarity is that I’ve been trying to rescue a youth centre in my constituency that the council can no longer afford to run. Thankfully, the brilliant New Ferry Rangers want to take it over as their clubhouse. I tell the chair of the FA, Greg Clarke, about our plans.

In doing so, I realise that the European Union’s competition rules apply to the beautiful game, just as they do to every other business sector in the UK. In practical terms, the absence of these continental rules opens up the possibility of changes to who can play, own and broadcast our wonderful yet expensive national game.

“Will Bosman still apply?” a colleague asks me with relish, referring to the 1995 European Court of Justice ruling that allows EU footballers to transfer easily from one club to another. Who knows? Who knows who knows?

 

Three lions on the shirt

The football dilemma is a microcosm of the wider immigration issue. Some imagine that by barring foreign talent from our shores, we will advantage British-born players. If fewer foreigners are allowed to play and English lads get more playing time in the Premier League, perhaps leaving the EU might result in the long-wished-for success for the England national team?

Unfortunately, it’s not as simple as that. If you don’t have the skills to play alongside the best in the world, you probably don’t have the skills to beat the best in the world. As the Spanish La Liga and the German Bundesliga have shown, there is no incompatibility in allowing league teams to source great players from around the world and still having your home-grown stars come together to win international tournaments.

The most important intervention is to enable your people to develop the skills that they need to compete. This is as true for football as it is for everything else.

 

Hammond’s gilt trip

It’s Treasury questions in the House of Commons this week, and I want to ask about the cost of British government debt, which dwarfs even the monstrous levels of cash in modern football. It is a bitter irony that, following the global financial crisis that helped the Tories win the 2010 general election, the slow-burn economic crisis that the party has since brought about with David Cameron’s botched referendum has received scant attention. (Particularly in comparison with the Westminster lobby’s anxiety about Labour’s record on debt and the deficit.)

British debt owned by foreign investors has now breached the high-water mark of £500bn, its highest-ever level. As the value of sterling tumbles, we can only wonder what risks may lie ahead, as our creditors watch the value of these investments fall.

The Chancellor responds to me by explaining how gilts work. He doesn’t answer my question at all, however, leaving us all to wonder what horrors the Budget in March might bring. It’s a lovely reminder that I am not immune to mansplaining, even in the House of Commons, and that we call it “parliamentary questions” and not “parliamentary answers”.

It’s also a demonstration of how little economic policymaking is going on. The great nation of John Maynard Keynes, the inventor of global economic institutions that have steadied the world, is now reduced to skulking around Europe, seeking an embarrassing exit from the union that cemented his postwar peace settlement. Once, we led in Europe. Now we follow as the hard right barks its orders.

 

Trading down

Listening to Theresa May’s Brexit speech later on Tuesday, my heart sinks again. She puts paid to the idea that we might stay in the single market. Reducing immigration is her life’s work, apparently. It is a grave error and one that must be resisted. The biggest challenge to our country is not that people are prepared to come to work here and pay their taxes here. New Britons deserve our respect.

 

A sporting chance

On Wednesday, I meet the Speaker to discuss the ongoing work to build on the legacy of our friend Jo Cox.

Through these hard days, I am reminded constantly of two things. First, the words of her brilliant husband, Brendan, who said that we will fight the hate that killed her. Jo never gave up on a monumental challenge, and all our kids need us not to lose heart now. Second, that my experience of Jo was that she focused on the challenge ahead and never wallowed. She was the best of us, and I wish I were more like her.

One thing that Jo and I had in common was that we took part in the annual House of Commons tug of war. Unlike the Premier League, we women of the political world cannot boast world-beating talent in our sport. But we demonstrate the spirit of This Girl Can, Sport England’s campaign to empower women in their sporting endeavours (which returns to our screens soon).

 

Making tracks

While we wrestle in politics with the horrific events that happened last year and the risks ahead, I am trying to demonstrate the This Girl Can spirit and keep up with my physical activity. I would love to be better at football, the sport I adore, but there are not that many opportunities to play, given the parliamentary timetable. So I get up early for a jog along the Thames and tell myself that going slowly is faster than never going at all. Without a doubt, for progressives right now, “Keep on Running” is our theme tune.

Alison McGovern is the MP for Wirral South (Labour)

Alison McGovern is Labour MP for Wirral South.

This article first appeared in the 19 January 2016 issue of the New Statesman, The Trump era