City very popular with Government and people of fashion (10)
I believe the answer is:
wellington
'city' is the definition.
(Wellington is an example)
'popular with government and people of fashion' is the wordplay.
'popular with' becomes 'wellin' (I am not sure about this - if you are sure you should believe this answer much more).
'government' becomes 'g' (abbreviation for government).
'and' means one lot of letters go next to another.
'people of fashion' becomes 'ton' ('the ton' could once mean fashionable society).
'wellin'+'g'+'ton'='WELLINGTON'
'very' acts as a link.
Can you help me to learn more?
(Other definitions for wellington that I've seen before include "Victor at Waterloo" , "Former PM" , "NZ capital" , "beef-dish?" , "Kind of boot" .)