High Streets First: a response to Eric Pickles

Don't be fooled by claims that the number of betting shops is decreasing.

Dear Mr Pickles,

Thank you for taking the time to reply to High Streets First, the campaign calling on you to give local people the power to limit the number of betting shops in their neighbourhoods. We have happily accepted your invitation to meet Bob Neill MP.

Since you have declined our invitation to Southwark to see the problem for yourself, I thought I'd give you a visible contrast of the number of betting shops in our area compared to yours:

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It seems that your constituency of Brentwood and Ongar has more florists than bookies. This map shows just seven betting shops in total, compared to ten flower shops. Southwark has over 68 active licensces for bookies, with nine in Camberwell Green ward alone.

I can't help but think that if you suffered this kind of proliferation in your area, you'd get what we're talking about.

Please don't be fooled by the bookmakers' claims that their numbers are decreasing. Despite the downturn, the total has risen to over 9,000 in the last few years, with many clustering in poorer areas See p. 6-8 here and p. 9 here.

Crucially, we have also seen an explosion in the number of high stakes gaming machines to over 32,000.

It's great that you acknowledge this principle in your letter:

"It is important that local communities can manage the overall retail diversity, vitality and viability of their high streets... I understand there can sometimes be concerns raised about problems faced by the clustering of betting shops in some high streets."

But I'm slightly concerned by this:

"...you may be aware local authorities already have the power to limit development in their areas, through article four directions..."

The fact is that Article 4 directions don't work for councillors. Even the LGA says they are "cumbersome, bureaucratic and costly". If local people want to block a store, we have to give a years notice or face potentially colossal compensation claims from large bookmaker companies.

Southwark isn't the only area that gets this. Since we launched, several thousand people have signed our petition, and many other councils have contacted us in support. We are meeting Waltham Forest and Ealing, and Manchester is passing a motion in support of the campaign that is spreading throughout the North West.

The media also seem to get it. You might have seen our coverage in the Daily Mail, the BBC Today programme, the One Show, the Independent, the Wright Stuff, BBC London and Southwark News. More is on its way.

We also have celebrity endorsement from "the Real Hustler" Alexis Conran on the back of his documentary on addiction, and a whole bunch of community groups are getting in touch. They are keen to start letter writing campaigns and build the petition. A group of young people in Southwark felt so strongly about the issue they stood outside Elephant and Castle shopping centre and collected 250 signatures off their own back.

Then of course there is the public. A recent poll by the LGA and ComRes found that over three quarters of people want central government to give councils more power over their high streets. Some 68 per cent are specifically against existing rules that allow betting shops to take over banks and building societies without planning permission.

We're not going away either. The campaign is now formally being led by GRASP () with a coalition of politicians, former addicts, grassroots groups, medical experts, churches and councillors. We're achieving all of this in our spare time around full time jobs, but more people are coming out in support every day.

We'd love you to join us.

Rowenna Davis is a 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 Images
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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR