It pays to go East in London

They say that everything from a pint to a new car is cheaper up North, but even within the confines of London, where you shop can determine how much you pay.

A survey by the Evening Standard has found that the price of goods and services from a pizza to a haircut, a ticket to the cinema or a gym membership will vary depending on where in the capital you buy them.

Rather than absorb the higher overheads of their sites in the centre of town, some firms simply pass them on to the consumer.

We found popular chains including Pizza Express, Warner Village cinemas and dry cleaners Sketchley charging more for the same items in central London than they do in the commuter belt.

The cost of a cut and blow dry at top salon Toni and Guy can vary by as much as £14 - depending on whether you are in Fulham or Essex.

Phil Evans, senior policy adviser for the Consumers' Association, said well-heeled locals and high rents were to blame for higher prices.

"The moral of the story is, if you are having your hair cut don't go to a rich area to get it done," he said. "Rents for these businesses are higher in these areas and staff cost more to employ, but they are also pricing themselves to the local market. It can always be worth shopping around."

That Toni and Guy cut and blow with a senior stylist would set you back £36 in Romford, but £50 in Fulham. In Islington we were quoted £47, while the cost in Croydon was £38.

Price discrepancies continued in the food and leisure sector. In Croydon, Pizza Express charges £7.45 for a four seasons pizza - 20p less than in Fulham.

However, the difference in price of going to the cinema varies far more widely. An adult ticket to a Warner cinema in Croydon costs £6.20 compared to £8.10 in Fulham. Go east to Dagenham and it is just £5.30.

Even nipping to the pub can reveal discrepancies. A pint of Stella Artois in JD Wetherspoons costs 11p more in Fulham than it does in Croydon, Dagenham and Islington.

The companies involved in the Evening Standard survey said prices depended on overheads in each area.

A Toni and Guy spokesman said its prices depend on costs and local competition. "When we open a new salon we find out the price of five other local hairdressers and take a price somewhere in the middle.

"It will also depend on running costs and overheads in each area."

A spokeswoman for Pizza Express said: "There are a limited number of restaurants with higher prices and this depends on both rents and competition.

"However, this difference is as little as five per cent and this is not only decided on whether they are close to town, but on a number of other factors."

Warner Village admitted its prices will vary depending on the local rates and rents, while Sketchley was unavailable for comment.

Last week, Ford dealers decided to knock £1,000 off the price of new cars in the North of England where rents - and wages - are lower.

However consumers who are not willing to travel hundreds of miles to shop can still save considerable sums of money on a new vehicle within the M25.

We found a Vespa ET4 scooter priced £50 cheaper in Croydon and Romford than in both scooter shops in Islington and Fulham.