Business owners have been told they have to take a sign down promoting stores in the Horncastle after a complaint was made to the council.
The sign was purchased by a consortium of businesses in Bridge Street and West Street to advertise that they are open between 9am and 5pm.
After the complaint the business owners, who collectively paid for the sign, have been told they must apply for planning permission for the sign - the price to apply for permission is £110.
One business owner told the News: “It’s a real shame it has come to this, we are really disappointed.
“The sign isn’t garish, it’s there to promote business down this side of the town.
“A number of shoppers who come to Horncastle may look down the street and not think there are any shops down here, but we want them to know that we are open - which is why we plugged together and purchased the sign in the first place.
“Now we are being told we have to take it down.”
Another business owner added: “Times are tough for businesses at the moment as they are without things like this happening.
“We just want tourists and visitors to the town to know there are more shops here.”
The group says they approached town councillor Richard Barker with their issue but were told that they would have to apply for planning permission due to Rights of Advertising laws.
A spokesman for East Lindsey District Council said: “Horncastle’s Town Council has written to the District Council asking that we investigate this sign to ensure it complies with the Government’s advertising regulations that govern signage.
“We are currently looking into this matter.”