It had been suggested as part of a drive to increase healthy eating among pupils and boost income from school dinners but councillors pulled back after an impassioned plea from one ice cream vendor.

“I totally agree with keeping kids on site during school time but why are you trying to discriminate between and ice cream van and shops?” asked John McNeil, who trades 100 yards from Handsworth Grange. “What’s the difference?”

The nearest shops were 150 yards from the school and children would simply use them.

Coun John Robson agreed. “I’m struggling to see the difference between a van and shops,” he said. “A blanket ban seems a sledgehammer to crack a nut.”

And Coun Clive Skelton, who chaired the licensing board, said: “I used to drink Coke and eat cream cakes at lunchtime and it never did me any harm.”

Some 160 streets were included in a pilot scheme designed to cover four secondaries – City School, Handsworth Grange Community Sports College, Newfield School and Yewlands Technology College.

The move was tabled by the council’s School Food Service, which wanted to stop pupils eating sweets and fizzy drinks in their breaks.

The service said better food meant better concentration and behaviour in schools. In addition it was argued that there was a health and safety risk for students crossing busy roads to reach ice cream vans and the vans were in direct competition with school meals services which were run as a business.

But councillors were told the result would be a permanent ban on all vans selling ices within half a mile of schools at any time of the day, all year round.

Coun Diane Lee, an ex-dinner lady, said schools should concentrate on keeping pupils on site during breaks.

And Coun Jack Clarkson said: “Ice cream can be the only source of calcium some kids get. I don’t see anything wrong with that. What are we going to be asked to ban next?”

The board heard Mr McNeil – whose grandfather Joe Molinari set up the business in 1926 – had moved his van further away from Handsworth School gates 15 months ago at the request of the school. He had also stopped selling cheap sweets loaded with e-numbers.

The council hopes to boost school meal sales to help cover a £762,000-a-year drop in cash when the Government’s school lunch grant ends in March 2011.

Councillors threw out the blanket ban proposal but said schools and the School Food Service should be consulted when considering mobile trading licences.

After the hearing Mr McNeil said: “A ban would have finished me so I’m relieved, for now. We’ll have to wait and see what effect that change will have.”

Mr McNeil must apply for a new ice cream van licence by April 1.