On complaining about Councils, it is a long process that will probably take a year or more in toto.
There's an analogy with PP, in that you have to go through the local process first before complaining to the regulatory body. The formal process is something like - complaining to Customer Services Section, then to Head of the relevant Service, then to the Ombudsman. They will probably (never done it) want you to have discussed it with the Planning Officer, and manager of the Officer first.
Each Council has its own process (though there will be a template somewhere), which can be accessed via gov.uk:
https://www.gov.uk/complain-about-your-council
There *is* provision for compensation at national level in some form, but I don't know if it covers eg consequential loss. It might be tempting to try the Small Claims Court if it is a clear cut case, but I have *no* idea if that has ever worked.
There are other routes, such as your MP etc.
I would say spend your legal / complaints budget on expert planning advice for your second submission, so that you cover as many angles as possible.
There are some ideas about selecting a Planning Consultants or advisers on the thread linked below. You need a proven successful record for cases very like yours, and intimate knowledge of your local council. You also need to know their role and your role, to have a very careful brief, knowledge of what your total budget for the process will be to each stage, probably a cap on the Consultant's time / budget, and I'd use a fixed price success fee on top.
For your own use it may also help to write down what circumstances will make you consider walking away to avoid "Dog and Bone" syndrome.
You can get free advice from the Planning Aid service of the Royal Town Planning Institute, but make yoruself aware of teh types of questions they can answer.
http://www.rtpi.org.uk/planning-aid/
Ferdinand