Mixed feelings about this - there's clearly a point where "I'm making a bit of food for friends" drifts into "I'm running a small shop" - but at what point in that do you say "you need to make sure your food preparation area is compliant"?
In an ideal situation, there would be a significantly smaller street trading fee for micro-businesses, or perhaps one which scaled with business size? If the council was running for the benefit of its community, the focus would be on supporting these micro-business through the process of bringing things up to standard and applying for the correct things, instead of fining them for being wrong.