Scores of pubs are believed to have been opening illegally for nearly two years thanks to a council cock-up.
Licensees in North Cumbria are outraged that they have still not received their premises licence - which is legally required to operate a pub - because Allerdale Borough Council claims it is understaffed.
Under the Licensing Act pubs should have had their licences displayed behind the bar from November 24, 2005 - the first day of the Licensing Act.
Licensee Mike Askey, of the Bitter End Brew Pub in Cockermouth, said: "If we were operating illegally because we'd made a mistake, we'd get shut down. But because the council haven't got enough staff, it seems absurd they are allowing us to operate illegally."
Sandra Tweddle at the Wild Duck Inn in nearby Branthwaite said she was dissatisfied with the council's attitude. "We are not happy about it, because we have had to pay a lot of money. They expect you to pay, you've got to do this, that and the other, but we have received nothing," she said.
John Glover, licensee at the Belle Vue in Cockermouth, was astonished the authority had experienced a backlog. He said: "We actually took on a pub outside Keswick as well and that licence was there within two weeks. If one council can do it, why can't the other?"
An Allerdale Borough Council spokesman said it had authorised the recruitment of two members of staff for six months to shift the backlog.
"Significant headway has already been made," he said. "All private members' clubs certificates have been issued, as have the biggest part of the premises licences for regulated entertainment (no alcohol), and most of the premises formerly holding off licences."
Mark Hastings, British Beer & Pub Association communications director, said the council's actions were "totally inexplicable".
"Not only is it inexplicable, it is inexcusable in the way that it exposes licensees to threats of action because they don't have a license," he said. "Given the expectations placed on our industry by local authorities, it's only right that we set expectations on local authorities, and in this area they have fallen woefully short."