We have lived in Outer London and I don't remember the cost of food and other goods being any higher than it was anywhere else (unless you do all your shopping at Borough Market!) However, the cost of property - both rental and owner occupied - is considerably cheaper up here; we know several people who have moved here from the south of England, having sold properties, and think all their birthdays have come at once in terms of where they can afford to live. The daughter of a friend of mine got a job in London and the only rental property she could afford was so far out of town, it was costing her a fortune to travel back and forth to work (this, of course, contributes in no small part to the cost of living being higher in the South). She also felt very isolated. She asked for a transfer to Manchester and has never looked back. She now owns her own house. I am all for decentralising some Government departments, and institutions such as the BBC, but while ever there is a culture of resistance from staff, it will not happen.