Red tape has left thousands of shoppers in the dark about colourful banners supposed to advertise an arts festival.

The flags, which include Eadweard Muybridge’s horses, rowing and the arts, decorate Kingston town centre as part of the International Youth Arts Festival (IYAF), which opened on July 1.

However, planning regulations meant they could not bear any message or logo promoting the festival because they would be classified as advertising, and require permission.

The decision led to fears the festival, in its third year, could lose potential patrons as people visiting Kingston would not know about it.

Councillor Chrissie Hitchcock, who represents the town centre, said: “I have asked people when I was in Clarence Street if they know what the flags represent, and they said ‘I don’t know – a festival maybe’, but they did not know what.

“It looks colourful, but it’s not saying Iyaf is going on. I think there should have been some way of letting people know what it’s there for, whether it’s a logo or one flag with Iyaf written on it.

“I would have thought it means they have lost some potential customers because no one knows what it’s about.”

One festival supporter said: “Iyaf has created these banners but is getting no benefit from them. The town should pay for them. It’s terrible, it’s a disgrace.”

A council spokesman said the authority supported Iyaf, and the banners created an atmosphere of celebration.

He said: “The banners do, of course, accord with planning regulations. The council is bound by planning requirements like everyone else and residents would expect us to comply with the relevant regulations.

“The planning advice provided in February explained that banners announcing an event require advertisement consent. Iyaf chose instead to create an attractive art installation – an option that does not require planning consent if displayed for less than 28 days.”

Phil Hetherington, IYAF development manager for creative youth, said: “All I would say is we couldn’t have done anything without the councils support, it’s phenomenal the support we’ve had. If we have had a problem with one particular department it’s that, it’s the only thing that falls foul.”