The chap who drew me to joining the Institute of Economic Affairs (yes, me!) Fred Harrison, publicising his new book "Ricardo's Law: House Prices and the Great Tax Clawback Scam", has a piece in the Yorkshire Post today detailing how it ain't so:

LONDON Mayor Ken Livingstone claims that the capital subsidises the rest of the country.

Taxpayers in London and the South-East, we are told, pay such heavy taxes that the Treasury transfers about £13bn to regions like Yorkshire.

This is one of the appalling myths that cripples public policy and prevents people in the regions from enjoying a square deal from the public purse.

In reality, people in the South-East are subsidised by the regions. And the housing market is the vehicle for delivering this shameful result. For the tax policies of the Treasury, which are supposed to transfer income from the rich to help the poor, are biased to achieve the opposite effect.