Council tax will be frozen in Leeds for the third year in a row.
The decision by the council’s ruling Labour group means a house in band D will be charged £1,123.
In return for freezing bills, the authority will be given a grant by the Government equal to a one per cent rise in the council tax.
Ministers have imposed strict rules on how much council taxes can be raised and city leaders decided that Leeds would be better off by around £400,000 if it accepted the Government grant rather than trying to raise money from residents.
Leeds City Council leader Keith Wakefield said: “If it had been financially advantageous to the people of Leeds we would have joined other Labour, Liberal and Conservative councils in not accepting this financial dictatorship.
“The group thought it was wiser to do everything we could to protect people and services.”
The council’s executive board of senior councillors will formally approve the council tax freeze on Friday as it also agrees the budget for the year ahead which will see the authority looking to make savings of £55m.
It has already made savings of £145m over the last two years and shed hundreds of staff in the process.
Eight residential homes could close as part of a wide-ranging package of measures aimed at balancing the books which will also see council house rents rising by 5.9 per cent.
The authority is also looking at other ways of raising revenues, such as by imposing parking charges on Sundays and in the evenings.
Council leaders have been angered by cuts to the money Leeds will receive from the Government to support local services in the year ahead.
Figures suggest Leeds has seen a bigger cut in the money it receives from Whitehall than any of the major cities outside London except Bristol although the Government insists the city is getting a fair deal.
Coun Wakefield said: “Given we have suffered one of the worst settlements in the country, I think we have got bigger arguments to have about the unfair allocation between authorities and between north and south.”
Despite the council’s decision, Leeds residents will still see a rise in their bills overall.
The West Yorkshire Police and Crime Commissioner is increasing the amount charged for policing by 3.8%.
The West Yorkshire Fire Authority is also expected to approve a rise on its precept, equivalent to a £5 increase for a band D property, later this month.
Residents could also see rises in the amounts charged by their parish council.