In the UK, "The City" is often used to refer to the London financial industry, much like "Westminster" is used to refer to the central government.
"Town" refers to urban centres in general, not just London.
Please give us an example of this usage.
http://www.gutenberg.ca/ebooks/sayers-busman/sayers-busman-0...
"On the way up to Town..."
"We started back to Town..."
"I'd come up to Town one morning..."
[0] https://books.google.de/books?id=ZdpPAAAAcAAJ&pg=PA197&dq="town+for+the+season> Only obnoxious wankers from London will, small minded people [...] will also talk about 'their little house in the country' when they mean it is barely on the outskirts of a city!
As somebody from the true North (with family originating in the North of Scotland) the way people refer to places always intrigues me. I once had a friend who referred to Southport (population 90k), where he grew up, as a small town.
I think most people don't actually have a real concept of the hamlet -> village -> town -> city relationship and so the words are easily repurposed. However I do not think doing this is somehow bad, or incorrect.
- "I'm going into town."
- "Let's meet in town."
- "Is there anything going on in town tonight?"
When I lived in the south-east of Ireland, "town" referred to the central business district of the nearby city of 50k inhabitants. When I lived in Dublin, "town" was Dublin city centre. And if I lived in or near London, "town" would refer to areas of central London.
It really has nothing to do with whether the place qualifies as a village, town, city or what have you.