A council tax freeze has been recommended, despite a Staffordshire authority facing up to a £2.7m gap in its budget for the year ahead.
Newcastle-under-Lyme Borough Council said it also had to save £3.1m over the subsequent years after 2011/12.
The cabinet of the authority recommended the council tax freeze.
Budget proposals will be scrutinised by elected members before being put to the full council on 23 February, council leader Simon Tagg said.
He added: "We are aware of how difficult many local people are finding things in the current economic situation.
"We are doing our bit by not putting up what we ask them to pay for the many services the borough council provides."
The council is a Conservative and Liberal Democrat coalition.