Instead of making phone calls, the kiosk in Fore Street in Kingsbridge plays records including Blondie’s Hanging On The Telephone and Telephone Line by Electric Light Orchestra, ITV reports.

The 8ft 3in (2.5m) tall box became the 5,000th to be adopted from BT when Kingsbridge Town Council took ownership of it.

Music fans can now listen to records by paying £1 to use a dial-a-disc type record system, with all proceeds donated to Kingsbridge-based charity @115.

Only one person – or two at a squeeze – can fit into the kiosk, which has stood in Fore Street for 60 years.

Councillor Chris Povey said: “This red phone box is an important part of Kingsbridge’s heritage and we were determined to keep it, but we also wanted to do something different with it – something really eye-catching – so we came up with making it the world’s smallest nightclub.

“Very importantly, it will also help raise funds for a Kingsbridge charity, which provides a vital service for the local community.”

The most common uses for phone boxes in BT’s Adopt A Kiosk scheme are art galleries, notice and information boards, book exchanges and to house defibrillator equipment.

Over the past decade the use of payphones has declined by more than 90%, although there are still about 5,000 working red payphones across the UK.

The Adopt a Kiosk programme was introduced in 2008, with local authorities or other organisations taking ownership of a BT phone box for £1.

Katherine Bradley, commercial and operations manager for BT Payphones, said: “Congratulations to the people of Kingsbridge for coming up with such an unusual and clever idea.

“The 5,000th adoption is a perfect example of the sort of creativity shown by communities wanting to find a new lease of life for many traditional red phone boxes.”