The Red Lion in Digby given permission by North Kesteven District Council to build cottage to provide essential income

A Lincolnshire pub facing hard times has been given permission to build a cottage which will provide essential income.

The Red Lion in Digby says it is facing “significant financial challenges” as fewer people than ever go to their local pub.

Its application requested permission to knock down outbuildings next to its car park and build a new single-storey home, which could be sold or rented.

Around ten objections were received from local people, many complaining that a loss of parking would lead to customers leaving their vehicles on the street.

The pub, which is between Lincoln and Sleaford, has been named as the best in Lincolnshire several times.

Planning documents say: “Like many pubs across the country, it is facing significant financial challenges.

“The rising cost of living has led to a decrease in patronage as people are forced to cut back on non-essential expenditures, including socialising at local pubs. This decline in revenue threatens the pub’s ability to continue operating.

“The development will provide much needed revenue, helping to offset the decline in pub patronage.

“The sale or rental income from the bungalow will contribute to the pub’s financial stability, enabling it to continue serving the community.”

It adds: “The Red Lion Pub is more than just a business; it is a vital community hub where locals gather for social interaction and community events.

“Supporting the pub’s financial health through this development helps preserve an essential part of rural life.”

North Kesteven District Council has granted permission for the application.

The pub was recently nominated as an Asset of Community Value, meaning that local residents would have the first chance to buy it if it came up for sale.

Around 80 pubs are shutting each month in the UK, government data revealed last year.

Higher prices from the cost of living crisis have been blamed as the main reason, along with a change in drinking habits.

Traditional village pubs have been some of the worst affected, although even pub giant Wetherspoons has called last orders at some of its many premises.