Manchester is threatening to take the government to court over Gordon Brown’s decision to scrap a Las Vegas-style super-casino promised to the city. Financial Times

Legal advisers have told the Labour-controlled city council that it has strong grounds to seek a judicial review of the prime minister’s U-turn over the gambling act.

Sir Howard Bernstein, the council’s chief executive, said yesterday: 'We will look very carefully at how we protect our interests. I wouldn’t rule out legal action.'

A review of alternative means of regenerating East Manchester, commissioned by the prime minister, has failed to come up with any proposals that would match the 3,500 new jobs and £250m of private investment the super-casino was set to bring in, said Sir Howard.