The railings - close to the main roundabout in the centre of the village - have proved to be increasingly popular.
And the council has allowed banners to be put up, promoting charitable events and organisations.
However, they are drawing up a new policy after hearing some banners were commercially based and promoted events primarily aimed at making a profit.
At a recent meeting, parish council chairman Coun David Clarke suggested no banners should be allowed at all.
He said it was ‘disrespectful’ and suggested there were alternative sites in the village - including the Millennium Gardens.
He was backed by Coun Rich Sanderson who said allowing banners on the graveyard railings was ‘inappropriate.’
He added: “I understand why the railings are popular because they are in such a prominent position but I agree there are other sites.”
However, Coun Graham Keegan said that the banners helped promote a number of local good causes and that the policy should continue.
He was supported b y Couns Adrian Wilson and Marcus Williams.
Councillors voted 7-2 in favour of allowing banners to be displayed and went on to hold a lengthy debate about which organisations and events were eligible.
Coun Williams said the railings should only be used for ‘purely charitable’ events.
Coun Clarke stressed banners promoting anything designed for ‘commercial gain’ should be banned.
He added that many organisations had websites which they could use to promote events - or had the resources to pay for advertising.
Councillors agreed some school events fell into the commercial category.
They said there was confusion about advertising by caravan and holiday parks after hearing banners for community-owned Jubilee Park were allowed - but other parks were prohibited.
Councillors agreed to introduce an application form to help clerk Amanda Bushell decide which banners should be allowed.