District councillors have agreed to freeze tax rates for the fourth year running despite facing further Government cuts.
South Kesteven District Council voted in its 2014/15 budget on Monday.
Councillors chose to freeze tax rates in exchange for a one-off £64,000 grant from the Government.
The council originally proposed an increase of 1.75 per cent. But the plans were changes after a public consultation.
This means the average rates for the South Kesteven element of the overall council tax bill will be £127.47 for 12 months.
Most properties in the district are in bands A and B where the annual charge is £84.98 and £99.14.
Strategic director of corporate focus Daren Turner said: “We want local people to live and work in a low tax South Kesteven and want to avoid increasing council tax bills, allowing people to keep more money in their pockets. This is a budget which invests in our residents, our infrastructure and jobs.
“Our strategy is seeing us through these difficult times while maintaining excellent local services. We want to continue to invest in our priorities which include a £6m project to redevelop a key part of Grantham town centre while investing in land across the district to make it easier for businesses to locate here.
“We are proud of that and equally proud that we are still able to pursue our ambitions to regenerate our district and with others’ help provide the area with new homes, new community facilities and new schools.”
Among the projects planned across the district are the first council houses to be built in 10 years. Plans to build new homes in Glen Crescent and Lincoln Road, Stamford, have already been approved and work has begun.
The council also hopes to improve its waste services with a major campaign to reduce contamination in our recycling.