Cabinet members at Neath Port Talbot Council have voted to accept proposals for a council tax freeze.
Neath Port Talbot County Borough Council's (NPTCBC) cabinet also voted to increase spending on services across social care, education, environment, finance and corporate services by more than £14m.
On top of this, cabinet members also voted to set aside £2m for the development of a Hardship Relief Scheme.
But a number of opposition councillors were vocal about their opposition to a freeze on council tax, calling for the council to go further and implement a reduction.
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Despite claims that a reduction in council tax would not be sustainable, Plaid Cymru group leader at NPTCBC, Alun Llewelyn, said he believed there was room for a "meaningful cut".
Cllr Llewelyn made his plea to cabinet members in an effort to "redress the balance" on what he called "historically high levels of council tax".
According to Welsh Government statistics, Neath Port Talbot is in the upper echelons of average band D council tax charged in Wales.
Of the 22 local authorities, NPTCBC has the second highest average band D council tax level at £1,996.
Independent Democrats Councillor Steve Hunt echoed Cllr Llewelyn's calls for a cut and proposed that the council's remaining £2.3m underspend from 2021-22 - currently earmarked for the Hardship Relief Scheme - be used to fund it.
Head of finance, Huw Jones, advised councillors to avoid proposing a cut, saying: "It is not prudent or sustainable and it is not something I would recommend."
On top of the 8.8 per cent increase in funding from the Welsh Government compared to last year's settlement, Mr Jones added that the council was only able to freeze council tax because of its "healthy reserves".
He said it was his intention to avoid putting the council in a "compromising position".
Cllr Llewelyn said: "Obviously during the course of the decision, several of us have said that we would like the cabinet to look again at the level of council tax for Neath Port Talbot and we know [that] there is scope there [for a reduction]."
The councillor added that if cabinet did not return with a proposal outlining a tax reduction, he would be forced to abstain in Tuesday's vote on the budget and that he and other councillors will look to produce an "alternative proposal".
The Hardship Relief Scheme is aimed at offering targeted relief for those who are struggling to meet the rising cost of living.
Cabinet members argued that using the £2.3m underspend in a targeted way would be more effective at helping those in need than the "blanket" approach of reducing council tax.
Cabinet member for finance Carol Clement-Williams said: "I asked about a reduction in council tax a very long time ago and I was advised that it was not the right thing to do at this time.
On the Hardship Relief Scheme, Cllr Clement-Williams said: "I am really afraid [that] people will be coming into a position where they will not be able to heat [their homes] or eat.
"I have been considering [this] for some time and I want to help those who need it the most."
Councillor Suzanne Paddison said: "We are all aware of people in our communities who do not qualify for this or that benefit.
"I am hoping that we will be able to [catch] people who do fall between the cracks of the current benefits available to them."
At the moment, it is not known what the criteria for receiving the hardship fund will be.
If the council approves the proposal to set aside £2.3m for the hardship scheme, a team will be set up to develop it before being brought back to cabinet for formal approval.
The council's budget proposals will now be considered for final approval at a meeting of full council on Tuesday.
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