Hyndburn Council avoids compulsory redundancies
Hyndburn Council in Lancashire has said it will freeze council tax and avoid compulsory redundancies despite having to make savings of £1.2m.
The authority said the majority of the cuts would be made through "better ways of working".
The Labour cabinet said there would be nine voluntary redundancies.
The Conservative opposition said the "steady" budget was a missed opportunity to invest in the local economy.
Council leader Miles Parkinson said the authority had under spent, cut the workforce from 450 to 320 and reduced its office space to make savings over the last two years.
He said: "I'm very proud of the position we are in and it's down to the workforce - everyone's pulling together."
Conservative group leader Peter Britcliffe said it was the right time to use the £3.7m the council holds in reserves to stimulate local business.
He added: "The council is in a very sound position financially and government grants have enabled us to freeze council tax."
Under the budget, announced at a meeting earlier, there will also be new investment in housing, with £4m earmarked for the Woodnook area.
The council said it would also support funding bids to improve leisure and community facilities in Great Harwood.