Hi Loraine
Whatever you do, try not to get into a serious dispute with your neighbour - such things now have to be disclosed when and if you sell your house. If she complains to Environmental Health and starts keeping a diary of the noise, you will have problems.
Dogs left in gardens when their owners are out can make much more noise than when their owners are around. We used to live next door to a couple who allowed their red setter access to the garden when they were out - it was a pretty noiseless dog when they were around, but left on its own, it barked and howled for hours in the garden. The constant noise, day after day, was enough to make any dog lover start tearing their hair out, partly because it would also set off every other dog in hearing distance.
Is it possible for you to get one of your nice neighbours to keep a record of the amount of barking that your dogs are making in the garden when you are out? That way, you will have a more objective view of the extent of the 'problem'. If it is fairly bad, then keeping them in will be the best thing.
Helen