Labour councillor Nicky Brennan said for some residents who may have sensory sensitivities, noise levels that were too loud could “cause increased anxiety, stress and mental fatigue”.
Conservative councillor Ewan Mackey said businesses in the city centre were “equally important” as residents.
But Liberal Democrat Deborah Harries said: “Does Birmingham really want to be a city culturally that is […] not really interested in doing anything to protect its musical heritage in terms of The Crown [pub] and Station Street and bans the busker?
“There must be better ways than this absolute hammer to crack a nut.”
The council’s deputy leader, Labour’s Sharon Thompson, said it was not true nothing was being done with regards to the pub known as the birthplace of Black Sabbath.
Thompson said she knew “we are doing things around Station Street”.
Several businesses backed the PSPO plan with some telling how city centre busking was taking a toll on workers and driving away customers.
A number of buskers said compromises could be reached, with one suggesting the council adopted a model similar to that of Busk in London with respect to basic licensing.
But council director of regulation and enforcement Sajeela Naseer said London had a “specific piece of legislation”.
Cabinet members approved the declaration of the PSPO and that officers should explore the feasibility of a ‘consent/permitting scheme’ for city centre busking.