Councillors have now agreed to give the Ilkeston funeral parlour permission for illuminated signs but at the same time asked it to be more "neighbourly", with the Co-op saying it will see if it can find a solution to the issue.

John and Catherine Beanland whose bedroom overlooks the rear yard of the funeral directors, which opened in November, in Lower Stanton Road, told a council meeting this week of their distress at seeing coffins off-loaded in the yard from their bedroom window, including a small coffin.

Retired teacher Mr Beanland, 62, said: "My wife screamed when she saw a coffin coming out of a hearse.

"It was small, obviously for a young child."

He asked councillors: "Put yourselves in our position. Think of the view you have from your window – would you be happy with our view?"

Cllr Ted Bishop, who backed the residents' campaign, said: "There should be a canopy to keep the visual side of the business away from John and Catherine's view.

"I think it's totally wrong – a funeral parlour should be of a discreet nature."

Council officers said the building, a former textiles shop, did not require planning permission to become a funeral directors but did require Erewash Borough Council's approval for its existing air conditioning units and illuminated signs.

The council's planning committee granted permission on the condition a note is passed to the applicants asking them to enter discussions with the residents.

A separate condition said the illuminated sign and rear floodlights should be turned off outside of working hours.

Cllr Howard Griffiths said: "What the Co-op is doing might be considered to be un-neighbourly. I move approval but I do think a note to the applicant to address this problem should be passed."

A spokeswoman for Midlands Co-operative Funeral Services, said: "We are in contact with the council and are open to finding solutions which will satisfy local residents without putting unreasonable restrictions on the operation of our funeral home."