To consider the following Motion submitted by Councillor Hardy:
“This Council:
(1) Expresses deep concern about both:
(i) the proliferation of high cost, short term lenders on our high streets and the increasing number of people becoming trapped in a cycle of long-term debt due to the extremely high interest rates charged by these companies; and
(i) the proliferation of betting shops on our high streets and particularly the huge increase in the number of high stakes, fixed odds betting terminals.
(2) Notes that:
(i) there are an estimated 1 million families a month nationally taking out payday loans, including many families in Sefton; and
(ii) there are over 33,000 fixed odds betting terminal machines in the UK making about £1.5 billion profit each year, causing debt and creating anti-social behaviour in many deprived neighbourhoods.
(3) Commits to working to tackle these problems in Sefton and protect vulnerable residents and employees through the following action:-
(4) Requests the Chief Executive to write to the Minister for Employment Relations and Consumer Affairs to lobby the Government to:
(i) Look again at introducing a cap on interest rates charged by high cost, short term lenders;
(ii) Introduce restrictions around the practice of ‘rolling over’ loans given the OFT’s recent findings regarding the proportion of revenue generated through charges associated with this practice;
(iii) Introduce restrictions on the number of fixed odds betting terminal machines allowed in each shop, reduce the maximum stake allowed and increase the time between each game; and
(iv) Re-designate high interest lenders and betting shops within the Town and Country Planning Act so as to require planning permission to be granted before certain establishments can be converted into high interest loan or betting shops.”
Minutes:
It was moved by Councillor Hardy, seconded by Councillor Killen:
“That this Council:
(1) Expresses deep concern about both:
(i) the proliferation of high cost, short term lenders on our high streets and the increasing number of people becoming trapped in a cycle of long-term debt due to the extremely high interest rates charged by these companies; and
(i) the proliferation of betting shops on our high streets and particularly the huge increase in the number of high stakes, fixed odds betting terminals.
(2) Notes that:
(i) there are an estimated 1 million families a month nationally taking out payday loans, including many families in Sefton; and
(ii) there are over 33,000 fixed odds betting terminal machines in the UK making about £1.5 billion profit each year, causing debt and creating anti-social behaviour in many deprived neighbourhoods.
(3) Commits to working to tackle these problems in Sefton and protect vulnerable residents and employees through the following action:-
(4) Requests the Chief Executive to write to the Minister for Employment Relations and Consumer Affairs to lobby the Government to:
(i) look again at introducing a cap on interest rates charged by high cost, short term lenders;
(ii) introduce restrictions around the practice of ‘rolling over’ loans given the OFT’s recent findings regarding the proportion of revenue generated through charges associated with this practice;
(iii) introduce restrictions on the number of fixed odds betting terminal machines allowed in each shop, reduce the maximum stake allowed and increase the time between each game; and
(iv) re-designate high interest lenders and betting shops within the Town and Country Planning Act so as to require planning permission to be granted before certain establishments can be converted into high interest loan or betting shops.”
Following debate, an amendment was moved by Councillor Brodie - Browne, seconded by Councillor Ashton, that the Motion be amended by the addition of the following text:
“(4) (v) welcome the Government’s investment in Credit Unions which has allowed them to offer payday loans capped ay 26.8% APR.”
Following further debate, Councillor Brodie – Browne agreed to delete the words “capped at 26.8% APR” from his amendment.
On a show of hands, the Mayor declared that the revised amendment was carried unanimously.
A further amendment was then moved by Councillor Shaw, seconded by Councillor Robertson, that the Amended Motion be amended by the addition of the following text:
(5) Requests the Head of Planning Services to report to the Planning Committee on the case for introducing an Article 4 Direction as a means of controlling the proliferation of betting shops and Pay Day Loan Shops
On a show of hands, the Mayor declared that the amendment was carried unanimously.On a show of hands, the Mayor declared that the Substantive Motion was carried unanimously and it was
RESOLVED:
That this Council:
(1) Expresses deep concern about both:
(i) the proliferation of high cost, short term lenders on our high streets and the increasing number of people becoming trapped in a cycle of long-term debt due to the extremely high interest rates charged by these companies; and
(ii) the proliferation of betting shops on our high streets and particularly the huge increase in the number of high stakes, fixed odds betting terminals.
(2) Notes that:
(iii)there are an estimated 1 million families a month nationally taking out payday loans, including many families in Sefton; and
(iv)there are over 33,000 fixed odds betting terminal machines in the UK making about £1.5 billion profit each year, causing debt and creating anti-social behaviour in many deprived neighbourhoods.
(3) Commits to working to tackle these problems in Sefton and protect vulnerable residents and employees through the following action:-
(4) Requests the Chief Executive to write to the Minister for Employment Relations and Consumer Affairs to lobby the Government to:
(i) look again at introducing a cap on interest rates charged by high cost, short term lenders;
(ii) introduce restrictions around the practice of ‘rolling over’ loans given the OFT’s recent findings regarding the proportion of revenue generated through charges associated with this practice;
(iii) introduce restrictions on the number of fixed odds betting terminal machines allowed in each shop, reduce the maximum stake allowed and increase the time between each game; and
(iv) re-designate high interest lenders and betting shops within the Town and Country Planning Act so as to require planning permission to be granted before certain establishments can be converted into high interest loan or betting shops.
(v) welcome the Government’s investment in Credit Unions which has allowed them to offer payday loans.
(5) Requests the Head of Planning Services to report to the Planning Committee on the case for introducing an Article 4 Direction as a means of controlling the proliferation of betting shops and Pay Day Loan Shops.