New Rules for Vape Shops and Betting Shops: What the Government Is Planning

Prime Minister Andy Burnham has announced plans to make new vape shops ask for permission before opening, and to give councils more power to block betting shops. The aim is to help revive England's high streets.

The Prime Minister said town centres had been 'hollowed out' by decades of decline and that many high streets have become unrecognisable, BBC News reported.

Under the plans, every new shop selling e-cigarettes or vapes in England would need to apply to its local council for permission to open. The government also wants to tighten the rules on what counts as a vape shop, so businesses cannot get around them by simply calling themselves a general store. Both of these measures apply in England only.

On gambling, the government plans to scrap a rule called 'aim to permit'. Right now, this rule means councils generally have to allow new betting shops and 24-hour slot machine arcades. Getting rid of it would let local councils say no more easily. That change covers Great Britain — England, Scotland and Wales. Gambling rules are partly decided in Westminster and partly by the devolved governments, so the change crosses those boundaries.

Separately, new adult gaming centres that want to offer 24-hour gambling machines would also need planning permission. This applies in England only.

The plans also extend closure orders for mini-marts and vape shops caught selling illegal tobacco, to up to twelve months. This applies in England and Wales, and was previously suggested by former Prime Minister Sir Keir Starmer.

The National Crime Agency (NCA) estimates that at least £1bn of criminal cash is laundered through UK high street stores each year, through businesses linked to fake goods, tax evasion, illegal working and illegal drug supply, BBC News reported. BBC News has previously reported on organised crime on high streets, including shops selling illegal cigarettes and vapes, selling cannabis and cocaine, enabling illegal working and suspected money-laundering.

Burnham said the measures will give councils more power to control what businesses open in town centres.

The announcement follows a series of government statements over the past year. In September 2025, a press release titled 'Communities to seize control over high streets and restore pride' said the government was giving councils in England the power to say no to new betting shops, vape stores and fake barbers. In May 2026, the government set out its 'Neighbourhood Guarantee', giving councils new powers to restrict certain shops, take over empty shops, and use the spaces to run services. In June 2026, the government announced new laws to shut down vape shops, barbers and nail salons linked to organised crime. Later that month, in a speech on 2 June 2026, the government said there are too often vape shops, bookies and barbers on high streets, and noted it had already given councils powers to limit the number of bookies.

The Conservatives and Reform said the proposals would lead to 'more empty' shops, without tax relief for other small businesses, BBC News reported.

The broader context here is that the government has been tying high street regeneration to the fight against organised crime since autumn 2025. The NCA's £1bn laundering estimate gives these planning changes a security angle that goes beyond ordinary retail policy. The different rules also apply to different parts of the UK: vape shop planning rules are England only, the betting shop change covers Great Britain, and closure orders for illegal tobacco apply to England and Wales. That patchwork will need careful handling, especially as the Scottish Parliament (Holyrood) and the Welsh Parliament (the Senedd) have their own plans for high streets and public health.

The opposition's criticism is that the plans will burden small businesses without giving them tax relief to help. That sets up a likely argument in Parliament when the detailed legislation is published.