UK Councils to Gain Broader Powers to Curb Vape and Betting Shops

UK Prime Minister Andy Burnham has announced plans to grant local authorities greater powers to regulate the opening of new vape and betting shops, in a bid to revive the nation's "hollowed-out" high streets and give local communities more control. This move by the government aims to reshape the commercial and social fabric of town centres after decades of decline.

According to statements from Downing Street, the new regulations will involve scrapping the "aim to permit" rule from the Gambling Act 2005. This rule currently limits councils' ability to refuse new betting shops, even when there are strong local objections. Additionally, vape shops and adult gaming centres (venues offering 24-hour access to slot and fruit machines) will be subjected to new planning permission requirements. Previously, vape shops fell under the same planning category as cafes and banks, allowing them to open without needing a new planning application.

These changes are designed to give local authorities and residents a direct say over the appearance and composition of their high streets. The government also intends to tighten the definition of a vape shop to prevent businesses from circumventing the new rules. Furthermore, the maximum length of closure orders for premises linked to organised crime will be extended from six months to twelve months. A fast-tracked six-week consultation on these new measures will be launched, with the aim of having the regulations in place by early 2027.

The policy shift is anticipated to have significant implications for the retail sector and the property market. Specifically, businesses in the betting and vaping retail estates may face direct constraints on their unit growth and rent rolls. Analysts at Newsquawk suggest that such regulations could disproportionately affect small-cap landlords and owners of retail parks. However, for larger operators, high street retail typically constitutes a modest share of their overall revenue. The long-term objective is to diversify high streets and support traditional retail businesses.

Prime Minister Burnham's initiative follows efforts by the preceding government under Keir Starmer to boost neglected high streets. The government highlights that between 2016 and 2026, nearly 1,800 pubs and bars closed across the UK, while the number of vape and tobacco shops rose to almost 2,200. This trend underscores the changing character of town centres and addresses public concerns. The policy is also viewed as part of a broader urban renewal strategy, which aims to stimulate private investment with public capital, rather than solely relying on the market to resolve post-deindustrialisation challenges.

Market analysts expect these regulations to prompt UK betting and vape companies to reassess their expansion strategies. The concern over the concentration of gambling premises in more deprived areas adds a new dimension to social responsibility and investor expectations. Moving forward, the scope of the draft legislation and whether it will be combined with additional measures, such as business rates or licensing reform, will be crucial in determining the ultimate impact of these policies. The government's stated goal is to bring back "butchers, bakers and bookshops – the businesses that make a high street feel like home."