Hastings Bistro, in Hastings Place, Lytham, was opened in October to great fanfare with award winning new chef Warwick Dodds and star guest Coronation Street's Kym Marsh.

Taken over by millionaires Trevor and James Allan, it is said on its website to be "the only place to eat in Lytham".

But at a meeting of Fylde Council's planning committee, it was revealed the restaurant is trading without proper planning authorisation.

Bosses at the restaurant have not secured approval to change the restaurant from a private members club to a restaurant – a legal requirement.

The issue has been a problem for 15 months since it changed from a private members' club to The Sparling restaurant.

One councillor said the venue was "flouting the rules" while another said they were "sticking two fingers up" at the council by applying for planning permission for a new extraction flue in the kitchen while trading without consent.

During a hearing to decide if permission should be granted to alter an extraction flue and make other minor alterations, Coun Kevin Eastham said: "The applicant appears to be sticking two fingers up at us."

He also raised the possibility of serving the restaurant with a "stop notice" which would be sought from the courts to prevent it from trading without proper planning permission.

A stop notice, if granted by the courts, would force the restaurant to cease trading unless bosses comply with planning regulations.
Coun Albert Pounder added: "Should we even be hearing this? It seems wrong to me."

Neighbours Frank Murphy and Sue Byrne, who attended to put forward their concerns, also slammed the restaurant for emitting odours, causing noise problems and trading unlawfully.

Mr Murphy, who lives next to the restaurant, said: "I cannot understand how these premises have been allowed to be used unlawfully and all sorts of works have been carried out without planning permission and approval."

The proposal for the flue was rejected, despite officers recommending it was approved to solve odour problems.

David Heeley, a newly appointed operating consultant at Hastings, said the restaurant was eager to solve the problems.

He added: "We are keen to address these issues in a mutually inclusive way and move forward – in tandem with planning officers and local councillors' wishes – to a conclusion that is good for all.

"Our planning consultants (DePoll Associates) are at great pains to work with Fylde Council and their officers to resolve this issue, mindful always of our obligations.

"It is a shame that while 99.9 per cent of the population and especially our diners, and employees, are overjoyed by our success, this very small number of dissenting voices have used this red herring to provoke controversy."

But Mark Evans, head of planning at Fylde Council, said during the meeting they were already looking into enforcement action".

Fylde planning officers said the problems did not affect Hastings' drinks licence, which is still valid.

Mr Heeley added the restaurant's public liability insurance was also not affected.