Councils asked if they still want small casinos

Ministers were accused of being in "complete disarray" over gambling last night as it emerged that 16 towns and cities awarded the right to open casinos are to be asked if they still want them.

James Purnell, the Culture Secretary, announced plans to check if any councils had had a "change of heart" less than a week after it emerged that Gordon Brown had torn up plans for a Las Vegas-style super-casino in Manchester.

The Prime Minister's decision to scrap the plans were welcomed by church leaders and charities but condemned in Manchester, where the project would have created 2,700 jobs.

At the time, Downing Street insisted there were no plans to abandon parallel proposals for eight large and small casinos in other towns and cities.

However, in a written Parliamentary statement yesterday, Mr Purnell said the councils involved should be allowed time for reflection. Further decisions on casino plans will also be delayed until a report due in the autumn on the prevalence of gambling.

The Culture Secretary argued that May's local elections meant the political complexion of some councils had changed since January when the smaller casinos winners were announced.

"Against this backdrop, I have decided to write to the authorities concerned to ask then to confirm their continued desire to licence a new casino," he said. "If any of the authorities have had a change of heart, I will not include them in the legislation."

His comments follow signals that ministers are keen to find a way to allow both Manchester and Blackpool to open a large casino. However, that would only be possible if some of the existing councils drop out.

Turning to the plans for the super-casino, Mr Purnell stressed that many MPs and peers had "expressed serious doubts" about the wisdom of opening such a large gambling complex. "We have taken heed of those concerns," he said.

With the Gambling Commission's report due to be published as early as September, Mr Purnell also stressed that ministers were ready to act if there was evidence of increasing problems.

"The gambling industry is on notice that if, despite the very stringent safeguards we have introduced, the incidence of problem gambling increases, we have taken powers to introduce even tougher protections," he said.

Jeremy Hunt, the shadow culture secretary, said: "This only makes things even more confusing. Can Manchester and Blackpool apply for one of the smaller casinos or not? What are the alternative regeneration strategies and how will they be funded?

"Most importantly, given the decision to cancel the super-casino was taken without consulting the Cabinet, can we have an assurance that future decisions will be taken in full consultation with Cabinet and parliament?"

Don Foster, the Liberal Democrat culture spokesman, argued that the Government's stance on gambling had been plunged into confusion.

"The Government are in complete disarray over this issue," he said. "Local councils were encouraged to apply for these licences, spent a huge amount of money during the bid process, and could now be left high and dry. Gordon Brown didn't mention any concerns about the impact these casinos could have when he was voting in favour of them back in March."