What is an item projecting 10" from the store front obstructing exactly?
With all that's been in the news recently about council misfeasance and deadly incompetence you'd think they'd be trying to find something useful to do.
Brick Lane is indeed narrow and often congested, and if a licence is required to place items outside a shop then it's only fair on all the other shops who comply that this bike shop should have to do the same.
The council said "We will visit the shop for a fourth time this week to offer help in applying for a licence and, if they do, we can review the latest fine", which seems perfectly reasonable to me (over-generous if they've already visited three times, I'd say).
And if there's no real obstruction, I hope they'd be granted the licence - but that's for the council to decide, not random people on the Internet who have no experience of the actual situation.
Alan