Newham explains why it will continue to fight the rise of betting shop clusters and urges other local authorities to do the same

This week we lost an appeal by Paddy Power over a decision to reject an operating licence on two grounds: we believed that it would add to crime and anti-social behaviour, and that the majority of profits would come from fixed-odds betting terminals.

The result was disappointing, particularly for the retailers and residents in our community who had demanded action.

They are under pressure because hard-pressed consumers are watching what they spend. At the same time, the internet and supermarkets have taken away a lot of trade from small businesses. Adding to this problem are betting shop clusters being created in the absence of effective licensing and planning controls.

In Newham, east London, we now have more than 80 betting shops, up by 23% since 2007. While the law limits the number of betting machines to four per premises, the betting companies are simply buying up multiple retail outlets. Premises such as former fast food takeaways and pubs are targeted because they do not require a change of use planning application to be made to councils.

Their presence in our community is no accident: sports minister Hugh Robertson, who oversees the industry, told the Commons the government was in little doubt that betting firms were targeting poorer areas.

Central government is not taking action because the tax revenue from the B2 category machines (with a maximum stake of £100) is around £300m. It is easy to collect and the amount will continue to rise.

A concentration of non-retail uses does little for an area's vitality or attractiveness and there are significant crime and anti-social behaviour associated with betting shops. We have received incoherent advice from government and the Gambling Commission, which regulates the industry, in regard to licensing powers. Worse still, the decision by communities secretary Eric Pickles to relax planning restrictions on the high street will add to the problem.

The verdict in our case at least offers some clarity on what councils need to do but it is not easy. It will need dedicated resources and joint working with the police.

A licence cannot be revoked for anti-social behaviour issues. It must relate to crime and disorder, which is a higher test for councils to evidence.

Part of our evidence was CCTV footage of a man with a metal bar going into a betting shop and the police later arriving. The judge made clear that if we had more evidence of this kind, we would have stood a better chance.

Better recording of crime in and around premises is critical. This will need local police making evidence gathering a priority and working closely with council legal and licensing officers.

Also relevant is the protection of young and vulnerable people and here too we are breaking new ground. We have served a Notice of Intention to hold a review of a premises licence on William Hill under section 200 of the Gambling Act 2005 because we have concerns about crime and disorder and of the protection of young people. Evidence will need to be persuasive as councils will need to show show repeated problems and clear breaches of the law. We need to demonstrate what impact this betting shop has had on residents.

Ultimately, however, ministers must act: betting shops should be given a separate planning class. This was a recommendation of the Portas review and would stop the conversion of a range of valued local facilities like shops.

Ministers should free local authorities to serve their communities and enable the enterprisers. Local authorities can do a lot to help them but we need the freedom to do it.

Someone who gave evidence in our case was former Treasury minister Stephen Timms. He warned that the community element of traditional betting is steadily being lost as the machines take over. Reform would protect this part of the industry, which in turn keeps alive events like the Grand National.

It's not red tape that is wiping out our independent shopkeepers, it's intransigent Whitehall ministers. If we are to remain a nation of shopkeepers, then a united effort across local government is needed to help them thrive and I invite you to join us.

Ian Corbett is Newham council's executive member for infrastructure and environment

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