The short version
- Local authorities in England will require new vape shops to obtain planning permission, tightening definitions to prevent regulatory avoidance.
- The government is removing the 'aim to permit' rule for betting shops across Great Britain, allowing councils greater discretion to refuse licenses.
- Opposition leaders argue that without tax relief and business rate reductions, these restrictions may lead to more empty storefronts rather than revitalized centers.
The British government has announced a significant expansion of local authority powers designed to control the opening of vape shops and betting outlets in town centers. Prime Minister Andy Burnham stated that these measures are intended to reverse decades of decline that have left many high streets unrecognizable and hollowed out. The initiative follows a series of investigative reports highlighting organized crime activities, including the sale of illegal substances and money laundering, within certain retail sectors.
Under the proposed changes, every new shop selling e-cigarettes in England will be required to apply for planning permission from local councils. The legislation also tightens the legal definition of a vape shop to prevent businesses from circumventing regulations by classifying themselves as general convenience stores or retailers. This shift aims to give local officials more direct control over the types of businesses that operate in their communities, addressing concerns about the density and location of these outlets.
In addition to restrictions on vaping products, the government is scrapping a rule known as 'aim to permit,' which currently limits councils' ability to refuse new betting shops and 24-hour slot machine establishments. This change applies across Great Britain. In England specifically, planning permission will also be required for new adult gaming centers that offer round-the-clock access to gambling machines. These adjustments are part of a broader strategy to improve the physical and economic environment of town centers.
The proposals also include enhanced enforcement capabilities for local authorities. Councils in England and Wales will gain new powers to extend closure orders for mini-marts and vape shops found selling illegal tobacco, with closures potentially lasting up to twelve months. This measure was previously proposed by former Prime Minister Sir Keir Starmer. The National Crime Agency estimates that at least one billion pounds of criminal cash is laundered through high street stores annually via connections to fake goods, tax evasion, illegal working, and drug supply.
Prime Minister Burnham emphasized that the changes are shaped by evidence of criminal exploitation on high streets. He cited Operation Vulcan in Greater Manchester as a successful model for clearing areas of counterfeits and crime, suggesting that similar approaches should be adopted nationwide. The government argues that these regulatory adjustments will make it easier for police to close problematic shops for longer periods while preventing the unchecked proliferation of new outlets.
Political opposition has been swift and critical. Conservative and Reform UK representatives argue that the proposals fail to address underlying economic pressures on small businesses. Sir James Cleverly, the shadow communities secretary, suggested that increases in business rates by the Labour government have already contributed to empty units, warning that additional planning regulations could lead to more boarded-up shops rather than revitalized centers. He called for tax relief and support for legitimate businesses instead of further restrictions.
Other parties have also expressed skepticism about the effectiveness of the measures. Liberal Democrat home affairs spokesman Max Wilkinson stated that the plan might fail unless accompanied by tougher powers to crack down on rogue operators and a scrapping of the business rates system. Reform UK economy spokesman Robert Jenrick echoed concerns about high business rates, arguing that without fundamental support for high street businesses, the policy would only create more vacancies. The Green Party described the proposals as inadequate tinkering, calling for rent controls for small businesses instead.
Industry representatives have offered a mixed response. The Betting and Gaming Council stated it supports tough action against criminal operators and agrees that local people should have a say over their high streets. However, the industry body disputed the notion that betting shops are spreading unchecked, noting that approximately 3,000 shops have closed since 2019. Local government leaders, including Councillor Eamonn O'Brien of the Local Government Association, have welcomed the increased powers for councils and communities to shape their local environments.
The announcement coincides with Prime Minister Burnham's tour of the UK, where he has indicated he will be in 'listening mode' as he develops a long-term plan to restore hope to struggling areas. The government maintains that it does not accept the decline of high streets as inevitable and believes that coordinated action between police, local authorities, and other agencies can remove criminal behavior that undermines community vitality. The coming months will likely see further debate over the balance between regulatory control and economic support for retail sectors.
As the legislation moves forward, the focus will remain on whether these planning changes can effectively deter illegal activity without stifling legitimate commerce. Critics argue that without addressing structural issues like business rates and tax burdens, regulatory measures alone may not suffice to revitalize town centers. The government's approach reflects a shift toward localized control, empowering councils to make decisions tailored to their specific community needs while aiming to curb the influence of organized crime in retail spaces.
Sources behind this briefing
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- BBC Business↗Councils to get more powers to stop vape and betting shops, PM announces
