Labour-run Maghull Town Council has announced that it has frozen its town council precept for the second year running.
Councillors agreed to freeze the amount it adds to Sefton's council tax bill.
Labour Councillors said they wanted to ensure that the tax payer in Maghull was not hit with any more of a financial burden - particularly at a time when money is tight.
Labour's Cllr Maurice Byrne said: "My Labour colleagues on Maghull Town Council and I were determined not to put council tax payers in Maghull under any more of a financial burden than we all already are.
"People are already struggling to make ends meet. The cost of living is rocketing and we did not want to add to people's financial struggles.
"That is why we decided to freeze the precept for this year."
Cllr Byrne said the town council has conducted a full financial review in light of the Tory-Lib Dem cuts on local authority funding.
Cllr Byrne said: "We had initially drawn up a budget which we were preparing to finalise, when we were told our funding was being slashed because of the Tory-Lib Dem cuts.
"The slashing of the double rating meant that we had to draw up the budget in the knowledge that we would have a lot less financial resources at our disposal.
"We looked at the town council's reserves, which are healthy due to the measures taken by Labour to ensure the tax payer of Maghull was getting value for money when we took control two years ago, and we looked at the huge level of debts which the previous Lib Dem administration left us with.
"We took advice from town council advisory body, the National Association of Larger Councils (NALC) and Sefton Council, on how we can go forward knowing that our precept needed to be set ahead of Sefton's budget.
"They confirmed that we could set the precept before finalising the budget.
"We are now in the process of finalising the budget which will involve us making further savings in light of the huge debts the Lib Dems left us with and the slash and burn policies of the Tories and Lib Dems in Government.
"But Labour on Maghull Town Council have made a cast iron guarantee that we will not be putting up the precept and we will do everything in our power to make sure that services will not be affected because of the Lib Dem and Tory cuts."