London has achieved the dubious distinction of topping the list of European Union cities in the latest cost of living survey by the Economist Intelligence Unit (EIU). On a world scale, it ranks number 7, surpassing both Paris and Geneva in the past 12 months.

Manchester, the only other UK city included in the study, has climbed to number 20, ahead of Amsterdam and all of the German cities surveyed.

The EIU attributes the high costs of UK locations to the continued strength of the pound. Sam Sperryn, chief executive of the London Chamber of Commerce, is worried. "The high cost of living and doing business in London could have serious implications for the capital's future competitiveness," he says.

Elsewhere, the news is better. Dublin, seat of the Irish "tiger economy", has actually dropped down the scale. It is a cheaper place to live and work than almost 50 other business locations.

Elliott Chase