Windows

We have a large kitchen diner with 2 windows, one of which looks directly into our neighbours kitchen (left side of the room) (so the blind is always closed), then one on the right side that looks into the garden. The neighbour on the right has just built a conservatory with normal windows all the way round.
Because the conservatory has been built about 3 or 4 foot from the 3foot fence (which belongs to the neighbour and has been erected in our land, not where it should have been), her windows look directly into our kitchen, into the only window that we could open the blinds on. The woman next door owns her house, we rent ours from the council and she hates us for it. She has told me that we are council scum because we don’t own our house, so we can’t speak to her about anything. She’s really nosey and is always looking in now.
Is there not a law about invasion of privacy? The council are not helpful, as usual, so I need to give them the facts! Trouble is, I don’t know them yet!