Earlier this year the terraces had to be shut down at 11pm. | Jaume Morey

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Restaurants in the popular Palma nightspot of La Lonja will be able to keep their terraces open until midnight from today and until 12.30am hours on public holidays. This is because the new Palma City Council government team has decided to comply with the court rulings that annulled the decree of early closure of the terraces.

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Business owners in the area have clashed with residents over opening hours and today's announcement will not be well received by many who live in the area but for the business community it is a major victory.

The terraces in La Lonja area are hugely popular with tourists especially during the summer season.