The bully next door

[WottyMcWottFace]

DD 7 is a very intelligent, confident and happy child, plays well with friends at schools and at home. she has some lovely similar aged friends in our street with the exception of the child next door. Girl next door is 10 and from what I have observed not a very nice child not only to DD but to the other younger children that play together. Her nastiness has been noted for sometime now and more frequently DD has come in terribly upset as she's been mean or hit out.
The parents aren't particularly nice so nothing said previously to them ... Rightly or wrongly I told DD not to play with her (difficult when there's a group of them) and if she's mean or horrible to her then she must stand up to her ... then come and tell me immediately.
Yesterday it all came to a head when the bully next door started shouting at DD again... DD shouted back at her called her a horrible person then came in to me crying ... Bully next door had also gone into to her own house crying.
I calmed her down and when she's settled sent her back out to the rest of the group to continue playing ... All was well until I heard almighty screaming and shouting ... I went out to find the mother of the bully threatening my 7 year old daughter! I completely lost it and made it clear to the mother that it's unacceptable..... It's completely out of character for me to speak (shout) out of term but I can't handle this any longer.
This awful girl next door has terrorised my daughter for months now and as soon as she stands up for herself she's ambushed by the bully mother.
This was yesterday... Im still so angry/upset and not slept with worry.
DD is scared to go out and now worried about going back to school .. She's going into juniors this time so Bully will be sharing play and lunch times now.
I'm so angry as now not only has the child terrorised her but the adult threatened her?!?
Any advise please I'm at a total loss and don't know what to do next.

[WottyMcWottFace]

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[Scrumptiousbears]

I've no advice as my kids are under 2. However clearly this child has become a bully as she has witnessed the behaviour of her mother.

With regard to the school at least any incident should be managed there by independent reasonable people (eg not shouty mother).

How did it end between you and the other mother?

[WottyMcWottFace]

thankyou I suspected it must be hereditary. I told her never to speak to my child like that and if there was a problem to speak like adults, she looked at me in discussed then started to shout and me in the same way she had DD so I just walked away. Any kind of adult conversation is unlikely. I just don't know what to do, bulling is bad enough without having to live next door to them! I'll definitely speak to the school before she goes back.