Deputy Prime Minister John Prescott has ordered the removal of a CCTV camera from a council-run homeless hostel.
Mr Prescott upheld an order by Brighton and Hove City Council that the camera must be removed from the facade of the Grade II-listed building in Regency Square, Brighton.
The freeholder, Munira Gheewalla, was ordered to remove the camera and two satellite dishes from another hostel for the homeless in Regency Square in November 2004 after planning officers were alerted to them.
She appealed to the Government on the grounds that she needed the cameras for security because of racial and homophobic abuse.
But Mr Prescott's office said: "The appellant has raised the issue of the need to protect the property because of racial and homophobic abuse.
"However, no evidence has been provided to substantiate her allegations and the Secretary of State gives no weight to the allegations.
"Retaining the unauthorised works would be visually harmful and would undermine the protection of the listed building.
"Dismissing the appeal would not be disproportionate and would not result in the violation of the appellant's rights."
Regency Square Area Society chairman Roger Hinton said residents had been fighting to get the camera and satellite dishes removed since they were put up about three years ago.
Mr Hinton said: "They are listed buildings and the owner completely flouted planning rules by putting them up.
"Local people who own property in Regency Square have to follow all the rules and don't want to see other people disregarding them like this.
"We are very pleased to hear the Secretary of State's decision."
The council took on a ten-year lease for both buildings from Mrs Gheewalla six months ago, leaving an unusual situation where council-run buildings were breaking the council's own planning rules.
Mr Hinton said: "The people who run the hostel use the camera and would like it to remain but it is an infringement of the planning law.
"There are problems with the kinds of people using the hostels which is a separate issue but doesn't change our minds about the camera."
Mrs Gheewalla has 28 days to appeal to the High Court if she wants to challenge the Secretary of State's decision.
When The Argus called at the two properties yesterday, a member of staff said he knew nothing of the controversy.
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