Tessa Jowell blamed the government's policy change on Las Vegas-style casinos on the Conservatives, saying £600m of investment and 40,000 potential jobs had been squandered. Only one super-casino will be licensed following the passing of the gambling bill, which received royal assent yesterday , rather than eight as originally intended.

The government cut the number this week in an attempt to get the Tories to support the legislation. The gambling bill was one of several pieces of legislation that required the Tories' support in the "wash-up" period before the dissolving of parliament this week and the government was forced to concede to their demands to get the reforms on to the statute book. The culture secretary told MPs she reluctantly accepted the change to ensure that the bill was passed. Matthew Garrahan