A district council has had to pay out £2.3m after an attempt to ban live animal exports was overturned in legal action.
Thanet imposed a temporary ban on these exports in 2012 after 40 animals perished at the Port of Ramsgate.
Exporters took the council to the High Court, which in February 2013 ruled the ban had been unlawful and Thanet was liable for damages.
A council statement said £2.3m was spent in 2014-15 on compensation following the ban. This is equivalent to about 12% of the council’s revenue budget for the year.
This is the second financial loss Thanet has suffered connected to the Port of Ramsgate.
A scrutiny report last year found Thanet had to write off £3.4m in unpaid port fees after its main user, ferry operator Transeuropa, hit financial difficulties and the council failed to detain its ship as part of debt recovery.