Maghull Town Council this week saved the town's Christmas Tree from the Tory-Lib Dem axe.
Sefton Council has announced that due to Conservative-Liberal Democrat government funding cuts to the local authority, it would not be able to fully pay for the town's Christmas Tree.
But the Labour group on Maghull Town Council decided to pay the shortfall for the tree themselves.
Maghull Town Council leader, Labour's Cllr Maurice Byrne, said he couldn't stand by and allow the unfair slash and burn policies of the Tories and Lib Dems in government destroy Christmas for the people of Maghull.
Cllr Byrne said: "The cuts which this Tory-Lib Dem government is imposing on this borough are hurting all sectors of our communities. But to allow their unfair policies to have an impact on how the town celebrates Christmas has multiple impacts on the community.
"It is crucial that a town's shopping centre has the ability to attract shoppers - ensuring that a town centre looks festive at Christmas-time is a way of doing that. That is why town centres across the country invest in Christmas Trees each and every year.
"It is good for business, it is good for the local economy and it is outrageous that yet again the policies of the Tories and Liberal Democrats were going to negatively impact on our shops and traders in our community."
Cllr Byrne said the key role of the town council was to improve life in Maghull for everyone in the community.
Cllr Byrne said: "Lots of people, young and old, get a lot of joy out of having the Christmas Tree in Central Square. We couldn't allow the cuts to damage that.
"I'd like to thank all of my Labour colleagues on Maghull Town Council for unanimously backing my call to save Christmas in Maghull."