The UK government is set to implement a series of enforcement reforms aimed at strengthening local council control over the types of businesses allowed on the nation’s high streets. This initiative will focus on betting shops and adult gaming centers (AGCs) to tackle illegal activities and breathe life back into town centers. It will also extend to vape retailers.
In a significant move, the government intends to abolish the current ‘aim to permit’ rule that has, until now, favored the establishment of betting shops and 24-hour slot machine arcades across Great Britain. This change means that AGCs offering all-hours access to gambling machines will now need planning approval to operate.
Additionally, any new shop in England wishing to sell e-cigarettes or vaping products will be required to obtain planning permission prior to opening its doors.
Prime Minister Andy Burnham took to Facebook this morning to label betting shops as "dodgy businesses," stating, "We’re giving local people and councils more control over what opens, and tougher powers to crack down on businesses that aren’t good for our communities. For too long, Westminster has stood by while our high streets declined. That ends now."
An official announcement regarding these changes is expected later today. The proposed reforms have sparked varied reactions among industry representatives and local government officials, with many cautioning that shifting planning regulations alone will not reverse the ongoing decline of town centers.
The Betting and Gaming Council (BGC) expressed support for the initiative to enhance local oversight of betting shops. A spokesperson stated, "We support tough action against criminal operators and agree local people should have a proper say over their high streets. But the suggestion that betting shops are spreading unchecked is simply wrong. Betting shop numbers have fallen by over a third since 2019. Around 3,000 shops have closed, and over 15,000 jobs have already been lost. It is wrong to lump highly regulated, licensed betting shops together with rogue or criminal businesses. Betting shops still support 37,500 jobs, bring vital footfall to neighboring businesses, and for many customers, they are valued community hubs. The real threat to Britain’s hard-pressed high streets is more empty units and fewer local jobs, not businesses rooted in the communities they serve."
The Local Government Association described the government’s approach as a “positive step” towards empowering councils to address problematic businesses. A representative said, “Extra powers will help councils in revitalizing high streets and shaping their communities, particularly in regulating betting and vaping shops, while also breathing new life into empty premises.”
Kirsty Caldwell, a compliance consultant at Betsmart, criticized the government’s comparison of licensed betting shops with vape shops on the high street. "The industry pours millions into regulatory controls and consumer protection. What’s more, it seems to have been conveniently forgotten by the PM that legal betting shops have been a fixture of the UK high street since the 1960s – their presence hardly creates an ‘unrecognizable’ high street," Caldwell commented on LinkedIn.
"How can a sector which generates circa £4 billion in tax revenue and well over 100,000 jobs nationwide be classified alongside industries which have no regulatory control whatsoever, and have been proven time and again to be fronts for laundering illicit funds?" she questioned.
These measures come against a backdrop of continued struggles for the retail betting sector, as several major UK operators have recently shuttered numerous shops. In August, Betfred announced plans to close 132 of its betting shops and reduce its workforce by over 600 employees by September. The operator attributed these closures to the increase in the UK’s Remote Gambling Duty (RGD).
Betfred CEO Jo Whittaker stated, "We have tried hard to protect all our sites and the colleagues who work in them, but the combined impact of higher employer National Insurance contributions, wage inflation, increases in gambling taxes, and wider economic uncertainty has left us with no choice."
Evoke also closed 200 of its William Hill stores in April, while Ladbrokes downsized its estate in Ireland following unsuccessful sale discussions.
