Prime minister David Cameron has urged councils to make full use of their existing powers to curb the growth of high-stakes betting terminals in high street betting shops.

Responding to Labour leader Ed Miliband at Prime Minister's Questions yesterday, Mr Cameron said: ‘Councils already have powers to tackle the issue, and I believe that they should make full use of those powers. I am not arguing that that is "job done"—there may well be more to do— but we have a review under way.

But Mr Miliband said senior Conservatives, including London Mayor Boris Johnson and chairman of the Local Government Association, Sir Merrick Cockell, were on record as stating local authorities lack the power to limit the number of machines.

Concern has been expressed over the clustering of betting shops as operators open multiple premises in close proximity to get around the stipulation that only four B2 machines - commonly known as fixed-odds betting terminals (FOBT) - can be installed in any one establishment.

Councils have also warned of associated problems with crime, anti-social behaviour and addictive behaviour caused by the machines - which allow players to gamble £100 every twenty seconds and promise maximum £500 payouts.