A Whiston nursery may have to rip down a council-funded wooden shelter after it was refused planning permission.
Sandfield Natural Play Centre on Lickers Lane had built the shelter next to its Grade-II listed building.
The nursery had built the structure using £15,000 from a council grant to increase capacity.
A Knowsley Council spokeswoman said the nursery submitted a bid to replace a canopy which would provide an outdoor space for children to have their lunch.
She said: “The timber construction was not what the grant was approved for and any such structure is the responsibility of the building’s owner to seek the appropriate planning permissions, which a builder could also have advised on.
“Whilst the planning permission to retain the timber structure has been refused, an Enforcement Notice has not been served as the council is working with the building owner to identify an appropriate way forward, taking into account the building’s Grade II-listed status.
“The council has the right to claim back the funding if it isn’t used for the purpose for which it was intended, but it is hoped a way forward can be agreed.”
Nick Tyrrell , Local Democracy Reporting Service