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Thanet council has been forced to pay £2.3m in compensation to companies who were blocked from exporting live animals from Ramsgate Port.
The huge payout has been made to unidentified companies who took the council to court for blocking exports.
That action was successful and the High Court ruled last year compensation must be paid to cover the losses as a result of the authority’s ban.
In a statement posted on its website about its most recent accounts, the council said:
"A High Court decision in February 2013 confirmed that Thanet District Council did not have the power to impose this temporary ban and as part of the ruling, confirmed the council was liable to pay compensation to the exporters to cover the loss of income incurred as a result of the six-week ban."
“In last year’s accounts, which have been open for public inspection, £2.3 million was spent on compensation on this matter.”
"Thanet District Council did not have the power to impose this temporary ban" - council statement
Live animal exports from the port were banned in 2012 after the deaths of more than 40 sheep.
But companies hit by the ban took the matter to court and in a ruling the council was ordered to lift it, saying it had no powers and should pay compensation to those affected.
A judge said the ban was a "disproportionate decision reached in haste" without receiving separate legal advice.
The council move had breached a fundamental element of the rules governing free trade in the EU.
At the time, the then Labour-run authority said it was extremely disappointed by the outcome and said it was exploring whether to appeal.
The then-council leader Clive Hart said: "As far as I was concerned, the decision was one taken by senior officers and the issue was one of safety for our staff. It was not a political decision taken by the cabinet."
The original decision to ban exports followed an incident in which 47 sheep were put down after being found to be lame.
Exports, which first began at the council-owned port in 2011, resumed in July this year.