Paddy Power are angry at Southwark councils new policy
Southwark Council are expected to rubber stamp the introduction of a tighter policy on betting and pay-day loan shops next week.
The policy, first introduced in October of last year, means operators require planning permission to open in any former food or drink establishment.
Southwark Council leader Peter John first announced plans to introduce tighter planning controls last summer, in a bid to curb the rise of the financial service businesses in the area.
Previously, bookmakers or pay-day loan shops were not required to apply for planning permission before opening in a restaurant, pub or takeaway.
Whilst the new policy does not mean the council can block any bookmakers or payday loan shops from opening, it increases the amount of hoops prospective companies have to jump through first.
The change only applies to Southwark’s formally designated protected shopping frontages which in Southwark includes parts of Borough High Street, Tower Bridge Road, Great Suffolk Street, Waterloo Road and Old Kent Road.
Speaking at the time the proposals were first announced, Cllr Fiona Colley, cabinet member for regeneration and corporate strategy, said: “Payday loan shops are often nothing more than legal loan sharks preying on the vulnerable and people are fed up with the increasing number popping up all over Southwark.”
“That is why we are taking action to make it more difficult for payday lenders to set up shop in former restaurants, pubs and takeaways.”
The move by the council has attracted strong criticism from bookmakers in the area.
Ladbrokes, which has branches in Blackfriars Road and Tower Bridge Road, have accused the council of implementing a “wholly disproportionate measure for which there is no reasonable justification for both its purpose and extent”.
Also critcising the policy is Paddy Power, which has a branch on Borough High Street. Acting through their solicitors, they threatened legal action against the council last October, accusing the planning committee in charge as not having been properly advised.
The Association of British Bookmakers have also spoken out also against the new measures.
A spokesperson said: “There are now fewer betting shops in Southwark than there were five years ago, and between them, they occupy just 2.3% of all the retail units in the Borough. This compares to the national average of 4%. The shops in Southwark employ over 450 people.”
“Southwark has a population of over 200,000 people, much larger than many towns and cities outside of London so, as the location of betting shops matches the density of population, of course there will be more betting shops in a highly populated area like Southwark.”
