A pub which was described as a ‘haven’ for drugs dealers and users has lost its licence to sell alcohol.

The owners of the Lord Brooke in Shernhall Street, Walthamstow were told today that they were not trusted by police to properly manage the business.

Waltham Forest Council’s licensing committee heard about how the pub was raided by police and council officers in March who found drugs dealers, drug paraphernalia and illegal immigrants living upstairs.

Marc Witham, a council licensing officer, described how he found ‘screwed up paper’ in corners of the pub which had been used to wrap cocaine.

He also told the committee that there were bags used to hold cannabis stuffed in the top of the toilet and high readings for cocaine residue around the pub and on the bar counter.

Desilu Estates Limited took over the running over the pub in 2010. The company applied to turn the pub into a hostel the same year but planning consent was denied.

However, during police investigations it was discovered that they have been running the East London Hostel above the pub.

There are four rooms, each with two bunk beds advertised online for £15 per person per night.

PC Matt Brown said that the only solution was to revoke the licence.

He said: “We have absolutely no faith in Desilu.

“The company lacks the required skills to responsibly manage a pub.

“It would be very difficult for someone not to notice drug dealing in this pub. I can only imagine that the customers were in control of the pub, not the licensee.”

Desilu Estates Limited which is based in Islington suggested a number of measures which they would put in place to avoid closure.

Designated Premises Supervisor Sharmila Fernando claimed that she would personally manage the pub after being criticised by police for her lack of interaction with the business.

However, licensing officers and police agreed that it was too late.

The pub will have 21 days to appeal during which time it can remain open.