Bunting can be strung from the lamp-posts in the high street of a Somerset town, the county council has said.
Burnham Chamber of Trade and Commerce said on Thursday the authority had refused permission for it to hang the decorations from lamp-posts.
The council said on Thursday a lamp-post fell and killed a child in London last year and it wanted to to avoid a similar tragedy in Somerset.
But on Friday it insisted there had never been a ban on using lamp-posts.
The Chamber of Trade has welcomed the statement as “fantastic news”.
Secretary of the chamber of trade, Jonathan Walter, said: “I’m really glad the bunting can go up and we can go on preparing for our celebrations – the bunting will be put up next weekend in time for the Jubilee.”
A spokesman for the county council said: “An engineer has met the Chamber of Trade and agreed that bunting can be fixed to the lamp-posts.
“We are happy for bunting to go up across the county for any occasion, but organisers should always contact Somerset Highways first if they want to attach it to our property.”