UK inequality is lower than most suppose
The average Londoner pays £5,000 more in tax than the services they receive. The south-east contributes £2,000 a head, and the east of England breaks even. The rest of England, like the three other nations, is also a recipient of money from the capital region.
London wages are indeed higher. This gets caught in the estimates of inequality. But the costs of living in London are also higher. Not just rent, but a pint and so on. We do not have equal prices across geography. These higher costs are not included in estimates of inequality.
That is, we might be measuring inequality of income but we’re not measuring inequality of consumption – and it’s of consumption that actually matters to how people live their lives.
Add into this that London stands out, much much more, than the capital or other richer regions of other countries does. And we’ve our explanation for why the UK has, apparently, higher inequality than other countries It’s geographic, yes, and a result of bad measurement.