Here is a method using Split(), useful if you need to get other elements of the path:
Code:
$sPath="\\some\path\London\file.txt"
$sPathBits=Split($sPath,"\")
$sFile=$sPathBits[UBound($sPathBits)]
$sCity=$sPathBits[UBound($sPathBits)-1]
"File name is '"+$sFile+"'"+@CRLF
"City name is '"+$sCity+"'"+@CRLF