Wyre Council leader Coun Peter Gibson insists residents are still getting a good deal despite increasing council tax by the maximum amount allowed without a referendum.
Wyre’s portion of a Band D bill will go up by £5 next year, an increase of more than 2 per cent.
That means Wyre’s services will cost Band D residents 52p per day - much less, Coun Gibson argues, than a cup of coffee or a daily paper.
He said: “We appreciate that people do not want to see their bills increase but we are proud to have kept the rise as low as we possibly can.
“Our council tax will be the lowest on the Fylde coast and one of the lowest, if not the lowest in Lancashire.
“We will have lost 70 per cent of our Government grant by the end of this financial year.
“There is no more support for a freeze on council tax. The decision was therefore made to go with a simple to understand £5 rise, one people can understand.
“When I’ve gone out into Poulton and spoken to people everybody has said they believe it is reasonable.
“We have to be smarter in the way we fund what we do, that includes a change in the way we think to try and raise more revenue from services we provide.”
Wyre is looking to services such as leisure centres and fees to boost coffers.
The £5 rise on a Band D property only refers to Wyre’s portion of the bill with Lancashire County Council, Lancashire Police and Lancashire Fire and Rescue all proposing higher percentage rises.
Residents in Wyre will see council tax bills increase to £1094 for a Band A home, £1641 for a Band D and £3,282 for a band H property.
The council tax and budget proposals go before full council next week.