How Labour plans to crack down on payday loan sharks

Miliband will announce that the party would give councils new powers to limit the spread of payday lenders and betting shops on the high street.

Ed Miliband will return from holiday to launch Labour's local election campaign today and he's prepared a new policy for the occasion. Speaking in Ipswich, Miliband will announce plans to allow communities to halt the spread of payday loan sharks, bookmakers and fast food outlets along their high streets.

At present, if a high street bank closes down, councils are powerless to stop a payday lender moving in, despite the negative effect they can have on the area, because they are classed as the same kind of business. In the last year, there has been a 20 per cent rise in the number of payday loan firms as well as a significant increase in betting shops and pawnbrokers. Miliband will aim to reverse this trend by granting councils new powers to prevent such businesses opening. According to the party, Labour would reform planning laws by creating "an additional umbrella class which allows local councils to decide if they want to place some premises in a separate planning category." This would allow local authorities to refuse planning permission on the grounds that, for instance, opening a payday loan shop would constitute a change of use. In addition, it would allow councils to limit the spread of other types of outlet where there is local concern such as betting shops and fast food takeaways. 

In proposing the change, Miliband will cite the example of Chatham in Kent, where 23 payday lenders operate within a mile of the high street and where residents complain that their presence is increasing levels of personal debt in the area. He will say: 

Too many councils are finding that they don’t have the real power to stand up for local people. But that is what politics is supposed to be about: standing up for those without power and giving power to them. Currently if a bank branch closes down, there’s nothing a council can do if a payday loan shop wants to move in and open up in the same place. Even if there's another lender next door. That can’t be right.

The policy is a notable example of Miliband's embrace of Blue Labour-style small c-conservatism and he will contrast his stance with that of David Cameron. 

David Cameron’s government used to say it would give people that kind of chance. But it hasn’t delivered. In fact, it is moving in the opposite direction. Not standing up to the powerful interests. So it is up to us to give local people a proper chance to protect the places that they love. To turn their high streets around.

The crackdown on payday lenders is one of the five policies Labour has chosen to prioritise for its local election campaign. The other four are:

- Cancelling the cut in the 50p income tax rate (dubbed "the millionaires' tax cut") and protecting tax credits for low paid workers.

- Introducing a mansion tax on property values over £2m in order to fund the reintroduction of a 10p tax rate on the first £1,000 of earnings above the personal allowance.

-Reforming the energy market to break the stranglehold of the big six energy companies.

-Cracking down on train companies who are putting "the price of the daily commute further and further out of reach". 

After his absence last week, it will also be worth watching to see what Miliband has to say about George Osborne's decision to link the Philpott case to the government's welfare cuts, which he was privately appalled by. 

Miliband will say that "too many councils are finding that they don’t have the real power to stand up for local people". Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty
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Rising crime and fewer police show the most damaging impacts of austerity

We need to protect those who protect us.

Today’s revelation that police-recorded crime has risen by 10 per cent across England and Wales shows one of the most damaging impacts of austerity. Behind the cold figures are countless stories of personal misery; 723 homicides, 466,018 crimes with violence resulting in injury, and 205,869 domestic burglaries to take just a few examples.

It is crucial that politicians of all parties seek to address this rising level of violence and offer solutions to halt the increase in violent crime. I challenge any Tory to defend the idea that their constituents are best served by a continued squeeze on police budgets, when the number of officers is already at the lowest level for more than 30 years.

This week saw the launch Chris Bryant's Protect The Protectors Private Member’s Bill, which aims to secure greater protections for emergency service workers. It carries on where my attempts in the last parliament left off, and could not come at a more important time. Cuts to the number of police officers on our streets have not only left our communities less safe, but officers themselves are now more vulnerable as well.

As an MP I work closely with the local neighbourhood policing teams in my constituency of Halifax. There is some outstanding work going on to address the underlying causes of crime, to tackle antisocial behaviour, and to build trust and engagement across communities. I am always amazed that neighbourhood police officers seem to know the name of every kid in their patch. However cuts to West Yorkshire Police, which have totalled more than £160m since 2010, have meant that the number of neighbourhood officers in my district has been cut by half in the last year, as the budget squeeze continues and more resources are drawn into counter-terrorism and other specialisms .

Overall, West Yorkshire Police have seen a loss of around 1,200 officers. West Yorkshire Police Federation chairman Nick Smart is clear about the result: "To say it’s had no effect on frontline policing is just a nonsense.” Yet for years the Conservatives have argued just this, with the Prime Minister recently telling MPs that crime was at a record low, and ministers frequently arguing that the changing nature of crime means that the number of officers is a poor measure of police effectiveness. These figures today completely debunk that myth.

Constituents are also increasingly coming to me with concerns that crimes are not investigated once they are reported. Where the police simply do not have the resources to follow-up and attend or investigate crimes, communities lose faith and the criminals grow in confidence.

A frequently overlooked part of this discussion is that the demands on police have increased hugely, often in some unexpected ways. A clear example of this is that cuts in our mental health services have resulted in police officers having to deal with mental health issues in the custody suite. While on shift with the police last year, I saw how an average night included a series of people detained under the Mental Health Act. Due to a lack of specialist beds, vulnerable patients were held in a police cell, or even in the back of a police car, for their own safety. We should all be concerned that the police are becoming a catch-all for the state’s failures.

While the politically charged campaign to restore police numbers is ongoing, Protect The Protectors is seeking to build cross-party support for measures that would offer greater protections to officers immediately. In February, the Police Federation of England and Wales released the results of its latest welfare survey data which suggest that there were more than two million unarmed physical assaults on officers over a 12-month period, and a further 302,842 assaults using a deadly weapon.

This is partly due to an increase in single crewing, which sees officers sent out on their own into often hostile circumstances. Morale in the police has suffered hugely in recent years and almost every front-line officer will be able to recall a time when they were recently assaulted.

If we want to tackle this undeniable rise in violent crime, then a large part of the solution is protecting those who protect us; strengthening the law to keep them from harm where possible, restoring morale by removing the pay cap, and most importantly, increasing their numbers.

Holly Lynch is the MP for Halifax. The Protect the Protectors bill will get its second reading on the Friday 20th October. 

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