London can be an expensive city to go for a drink in, particularly if you ever find yourself in a trendy nightclub.

But reports that an establishment called Movida, popular with hedge fund managers and other so-called ‘masters of the universe’, is to sell a cocktail at £35,000 a time almost beggars belief.

Excessive consumption on this scale prompts several thoughts.

One is that anyone willing to spend more than the national average salary on a drink is certifiable, or so crass as to be ridiculous.

A more reflective thought is that there is now something seriously wrong in a country where such ostentatious flaunting of wealth occurs.

And what is staggering is that the clientele of Movida are so well-off that they can afford such extravagances without it damaging their finances unduly.

According to the British media ingredients in the sky high cocktail include a large measure of Louis XII cognac, half a bottle of Cristal Rose champagne, some brown sugar, angostura bitters and a few flakes of 24-carat edible gold leaf.

However the dearest ingrediant is an 11-carat white diamond ring – to be found at the bottom of the glass.

One punter apparently said, when asked if he felt guilty over indulging in champagne at £7,000 a bottle: ‘not really, I will earn more in interest tomorrow than I’ve spent in here tonight’.

London’s Mayfair is well-known for its hedge fund managers reaping the rewards of ‘2 and 20’ fee structures (2% base and 20% of any outperformance).

In addition, the UK tax regime for ‘non-domiciles’ is very friendly, so plutocrats from the Middle East and Russia have joined the party.

Up until now most politicians and many of the public have accepted that London needs the super-rich if it is to compete as a major financial centre. But as the conventional economy looks to be heading towards recession, there could be a backlash against the excesses of the new elite.

As one commentator put it, anyone splashing out £35k on a drink is really screaming ‘tax me’ at the very least.

While the government and opposition may be wary of calling for higher income taxes, changing the rule on ‘non-doms’ or bringing in a wealth tax could be a popular move if sold as an attack on billionaires and City fat cats.

Extremes of wealth are historically associated with countries on the brink of upheaval.

Britain may not be about to undergo a revolution, but the growing divide between the very top income brackets and the rest of the country is hardly good for social stability.

Over the last ten years most Britons have enjoyed a consumer boom, based on easy credit and rising property prices.

If that ends, more attention may be paid to the lifestyles and wealth of those at the top of the pile and there could be political price to pay.