
If you've ever watched the cartoon "The Simpsons" you'll be familiar with the father (Homer) yelling "Doh!" whenever he's missed something blindingly obvious; usually some prank by his son Bart.
I'm not quite sure who should be yelling "Doh!" this time, but a few days ago, the
Institute for Fiscal Studies (IFS) published a
report that recalculated poverty statistics to - shock, horror - take into account the cost of living. The image above is from the Channel 4 News report on the story which shows how much London and the West Midlands are affected.
You may be wondering why it is that the amount it costs people to live (in other words outgoings), and not just the amount they have coming in has not been analysed before. So do I.
It is surely self-evident that if house prices, food prices, energy prices and transport costs are dramatically higher than elsewhere (as they are in London), then wages have to be proportionately higher too, or else those who live here will be worse off. It's why we have London weighting but even this doesn't come close to reflecting the true cost of living.
London is, paradoxically, both the richest and the most deprived part of the United Kingdom. Areas traditionally regarded as poor because of their relatively low income levels - like Scotland - are, when cost of living is added-in, among the best off.
It is remarkable that politicians of all parties, who regardless of whether or not they represent London constituencies tend to have homes in the capital, have never really acknowledged quite what a problem this polarity between exceptional wealth and extreme poverty is. And because jt has never been given the prominence it deserves in official statistics, London has not done as well as it should for decades.
London is the wealth creator of our country: it is right that the huge wealth generated by the City is redistributed. But a fair share must be reinvested in the capital to mitigate the high cost of living here. All of the country has benefited from increased investment in schools, hospitals, housing and getting people back to work, but some have done better than others.
I want to see the cost of living properly reflected in government spending from now on and I hope London MPs (and those in the Midlands, which has also been put at a disadvantage) of all parties share that aim.
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