The flag was flying on one of three poles outside the offices
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A council has given itself planning permission to fly the European Union flag from its County Durham offices.
Wear Valley Council took down the Ring of Stars following complaints from members of the public.
On Thursday night, the council's own planning committee approved a revised application to fly the flag applying for "advertisement consent".
Anti-EU campaigner Neil Herron, who made the complaint, said he was determined to pursue his case.
The row erupted after Mr Herron, who has a property in Wear Valley and is a council tax payer, saw the flag outside the civic centre in Crook.
Mr Herron is a member of The People's No Campaign group which opposes the European Constitution, and is best known as a "metric martyr".
Public money
Mr Herron argued that it was unlawful to fly a non-national flag from a public building, and the flag was removed two months ago.
It has cost £265 for the council to apply to itself for permission.
At the planning meeting on Thursday, 19 objections were put forward, although not on what the council deemed to be planning issues. All 14 councillors on the committee voted down the opposition.
Neil Herron is determined to pursue his case against the EU flag
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But Mr Herron said it was more than just a planning matter, and he would pursue his case further.
He said: "It doesn't end. They can't do it with public money. They are using our money to drive forward a political project and use this as propaganda.
"We will consider the Local Authority guidelines on publicity - they cannot use public money to promote a political project."
The council's deputy leader, Charlie Kay, said after the meeting: "Britain is a member of the EU, I class myself as a European person and there's no question when you are involved in local government you see how much the North East has benefited from being a member of the EU.
"But tonight has been about the mechanics of flying a flag outside council head offices."