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High-profile gigs by stars like Madonna will go ahead as planned in Hyde Park this summer after a decision by councillors.
But from next year the number of concerts at the outdoor venue will be reduced from 13 to nine, following complaints about noise.
The number of people attending events will be reduced from 80,000 to 65,000 and in some cases 50,000, again from 2013, Westminster Council's licensing sub-committee ruled.
In the meantime there will be improved provisions for safety at the end of concerts, including more stewards, and for cleaning up mess left after them, both in and around the park, with costs to be met by the Royal Parks.
There will also be more monitoring points for music with a repetitive bass beat, which will be tested through the 2012 events and reassessed later in the year.
Mayor of London Boris Johnson said he was "delighted" by the decision, which meant "all systems are go for a summer like no other in our Olympic year".
The number of concerts to be held came into question after residents in well-to-do Knightsbridge and Belgravia complained about noise.