An open letter to Eric Pickles

People are losing control of the public spaces they love. Give local councils a say over betting sho

People are losing control of the public spaces they love. Give local councils a say over betting shops.

Dear Mr Pickles,

I'm writing to invite you to Peckham. People here feel that their high streets are being inundated with betting shops. They feel that they are losing control of the public spaces they love. They look to me and my fellow councillors for leadership, but at present we don't have any meaningful powers to change things. You have the ability to grant us that authority, and we want to show you why.

High Streets First is a new campaign I've launched with the grassroots group Grasp asking you to give local councils a say over betting shops. We launched last week and broke 1,000 signatures in two days. Endorsements came in from MPs including Tom Watson, David Lammy and Harriet Harman. Conservative Councillor David Parsons and the LGA pledged their support for reform. Owen Jones and the blogs got on board. We received great press coverage, and more is on its way.

If you accept invitation an invitation to our borough, I'd start by giving you a tour. At present there are 77 betting shops in Southwark, and more are opening up as businesses close in the downturn. Local people are not against gambling, but they are against this kind of proliferation. On a map, it looks something like this:

map

Map: Harriet Harman MP. The Problem of Betting Shops. November 2011

I don't know how many betting shops there are in your Brentwood and Ongar constituency. I imagine less, because research from the Responsible Gambling Fund suggests they are clustering machines in areas that are poorest. In Southwark the average family income is £17k, and I pass eight bookies on the ten-minute walk to my council surgery.

Dirk Vennix, head of the Association of British Bookmakers, says that betting shops can bring life to empty high streets. I don't doubt that's true in some cases, but that's not happening here. People in Peckham say they are fuelling debt, addiction and anti-social behaviour. They say they are putting off other businesses by blighting the high street.

Some of the biggest concerns come from people who are in the betting industry themselves. This is what one manager from Camberwell, where there are five bookies within 200m, told me:

"In the area I'm in there aren't that many rich people coming in. People who are unemployed, people who are on benefits, and you get a lot of retired men coming in to pass the time. You get younger lot coming in thinking they're going to earn money. Seriously... we're quite close to the Maudsley (hospital for mental health) and we get people who are homeless wanting to double their money... some of the stores open at 7am and we get people coming in and spending their whole day going from one shop to the other, especially people with no money."

"...you have to deal with all sorts of personalities, and some can be very nasty. They do get violent as well. They kick the machines when they're losing. I've seen people pick up stalls and smash them over the machines. They're rude to me but it's just part of the job..."

"...I see people come in from the pawn shops and pay day loan shops, people who pawn their phone chasing their money (that's already been lost). You get to know the customers and they give you their life story and they take advantage. They say "borrow me £1 or £2 and I'll pay you back as soon as I've won". Sometimes they ask you just for a drink or something to eat. Some genuinely don't have the money for that at the end of the day."

This manager says he hates his job, but he does it to pay the bills and look after his daughter. His real dream is to be a youth worker, but there aren't that many opportunities available right now.

Local residents also have their concerns. Georgina Green, secretary of Consort Residents Association, is one of the hundreds who are leaving messages of support on our petition and via email:

Personally feel its morally wrong to encourage folk to gamble, yes to personal choice just not when every other shop screams lose your money to an already stressed out and depressed populous!

This isn't just an issue for Southwark. A number of local councils have tried to challenge unpopular new betting shops and failed. Recently a group of female councillors in Leeds lost a battle to stop a new Ladbrokes opening in the entrance to their historic Morley's market. More concerns have been raised in Northampton. Lewisham has also run into difficulties.

Your own independent review into high streets by Mary Portas recommended you grant local councils the power to decide how many betting shops they want on their streets. Doing this seems consistent with your proud and vocal commitment to localism, and it doesn't cost a penny. Local democracy should be a principle, not a gamble.

Please put High Streets First, and come to Peckham.

Yours,

Cllr Rowenna Davis

Rowenna Davis is a councillor, journalist and author of Tangled up in Blue: Blue Labour and the Struggle for Labour's Soul, published by Ruskin Publishing at £8.99. She is also a Labour councillor.

Rowenna Davis is Labour PPC for Southampton Itchen and a councillor for Peckham

Photo: Getty
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The Future of the Left: A new start requires a new economy

Creating a "sharing economy" can get the left out of its post-crunch malaise, says Stewart Lansley.

Despite the opportunity created by the 2008 crisis, British social democracy is today largely directionless. Post-2010 governments have filled this political void by imposing policies – from austerity to a shrinking state - that have been as economically damaging as they have been socially divisive.

Excessive freedom for markets has brought a society ever more divided between super-affluence and impoverishment, but also an increasingly fragile economy, and too often, as in housing, complete dysfunction.   Productivity is stagnating, undermined by a model of capitalism that can make big money for its owners and managers without the wealth creation essential for future economic health. The lessons of the meltdown have too often been ignored, with the balance of power – economic and political – even more entrenched in favour of a small, unaccountable and self-serving financial elite.

In response, the left should be building an alliance for a new political economy, with new goals and instruments that provide an alternative to austerity, that tackle the root causes of ever-growing inequality and poverty and strengthen a weakening productive base. Central to this strategy should be the idea of a “sharing economy”, one that disperses capital ownership, power and wealth, and ensures that the fruits of growth are more equally divided. This is not just a matter of fairness, it is an economic imperative. The evidence is clear: allowing the fruits of growth to be colonised by the few has weakened growth and made the economy much more prone to crisis.

To deliver a new sharing political economy, major shifts in direction are needed. First, with measures that tackle, directly, the over-dominance of private capital. This could best be achieved by the creation of one or more social wealth funds, collectively held financial funds, created from the pooling of existing resources and fully owned by the public. Such funds are a potentially powerful new tool in the progressive policy armoury and would ensure that a higher proportion of the national wealth is held in common and used for public benefit and not for the interests of the few.

Britain’s first social wealth fund should be created by pooling all publicly owned assets,  including land and property , estimated to be worth some £1.2 trillion, into a single ring-fenced fund to form a giant pool of commonly held wealth. This move - offering a compromise between nationalisation and privatization - would bring an end to today’s politically expedient sell-off of public assets, preserve what remains of the family silver and ensure that the revenue from the better management of such assets is used to boost essential economic and social investment.

A new book, A Sharing Economy, shows how such funds could reduce inequality, tackle austerity and, by strengthening the public asset base, rebalance the public finances.

Secondly, we need a new fail safe system of social security with a guaranteed income floor in an age of deepening economic and job insecurity. A universal basic income, a guaranteed weekly, unconditional income for all as a right of citizenship, would replace much of the existing and increasingly means-tested, punitive and authoritarian model of income support. . By restoring universality as a core principle, such a scheme would offer much greater security in what is set to become an increasingly fragile labour market. A basic income, buttressed by a social wealth fund, would be key instruments for ensuring that the potential productivity gains from the gathering automation revolution, with machines displacing jobs, are shared by all.  

Thirdly, a new political economy needs a radical shift in wider economic management. The mix of monetary expansion and fiscal contraction has proved a blunderbuss strategy that has missed its target while benefitting the rich and affluent at the expense of the poor. By failing to tackle the central problem  – a gaping deficit of demand (one inflamed by the long wage squeeze and sliding investment)  - the strategy has slowed recovery.  The mass printing of money (quantitative easing) may have helped prevent a second great depression, but has also  created new and unsustainable asset bubbles, while austerity has added to the drag on the economy. Meanwhile, record low interest rates have failed to boost private investment and productivity, but by hiking house prices, have handed a great bonanza to home owners at the expense of renters.

Building economic resilience will require a more central role for the state in boosting and steering investment programmes, in part through the creation of a state investment bank (which could be partially financed from the proposed new social wealth fund) aimed at steering more resources into the wealth creating activities private capital has failed to fund.

With too much private credit used for financial speculation and property, and too little to small companies and infrastructure, government needs to play a much more direct role in creating credit, while restricting the almost total freedom currently handed to private banks.  Tackling the next downturn, widely predicted to land within the next 2-3 years, will need a very different approach, including a more active fiscal policy. To ensure a speedier recovery from recessions, future rounds of quantitative easing should, within clear constraints, boost the economy directly by financing public investment programmes and cash handouts (‘helicopter money’).  Such a police mix – on investment, credit and stimulus - would be more effective in boosting the real economic base, and would be much less pro-rich and anti-poor in its consequences.

These core changes would greatly reform the existing Anglo-Saxon model of capitalism and provide the foundations for building support for a new direction for progressive politics. They would pioneer new tools for building a fairer, more dynamic and more stable economy. They could draw on experience elsewhere such as the Alaskan annual citizen’s dividend (financed by a sovereign wealth fund) and the pilot basic income schemes launching in the Netherlands, Finland and France.  Even mainstream economists, including Adair Turner, former chairman of the Financial Services Authority, are now talking up the principle of ‘helicopter money’. For these reasons, parts of the package are likely to prove publicly popular and command support across the political divide. Together they would contribute to a more stable economy, less inequality, and a more even balance of power and opportunity.

 

Stewart Lansley is the author of A Sharing Economy, published in March by Policy Press and of Breadline Britain, The Rise of Mass Impoverishment (with Joanna Mack).