Ipswich Borough Council's leaders have agreed to have its portion of council tax increase by 2.98%.
On Tuesday, the council's executive considered the medium-term financial plan for 2025/26 and beyond, which included a discussion on council tax.
The council is looking to bridge the £23million budget gap discovered last September over the next four years.
Leader Neil MacDonald believes that raising their portion of council tax by 2.98% would ensure that the council can continue to offer services to its residents.
While this suggestion received some backlash from leaders of other parties, it was eventually unanimously approved by the executive committee and will go before the full council next Wednesday for approval to implement it.
At the meeting, Mr MacDonald said that high levels of inflation and cost uncertainty over the last few years had put the council in a difficult position, but they are committed to providing high-quality services to residents.
"This is less than the other organisations in Ipswich, as Suffolk County Council will increase their share by 4.99%, and the police and crime commissioner will increase their portion by 5.06%.
"Despite the financial situation, the borough council will still be able to protect the council services residents love and value.
"Our actions are putting the council into a more stable position."
In terms of the council tax, he added: "While we might be raising our council tax less than other authorities, we are still raising our council tax by the maximum amount that we can."
Share