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Council tax in Leicester will not rise as much as first proposed due to the recession, officials have said.
The city council had proposed a 5% rise but changed it to a 4.48% increase.
The budget meeting prompted a union protest over cuts which it said would cost 200 jobs. A handful of demonstrators turned up.
Council tax for an average Band D home will be �1,380.68, a rise of �56.71. Councillors said taxpayers were under pressure.
The council said the cuts, aimed at saving �6m while supporting investment, would mean about 55 redundancies.
The meeting heard that despite rising costs and falling income for the council, it had to recognise taxpayers were under pressure too.
The council emphasised the new budget included almost �10m of investment to cater for a growing ageing population and helping under-performing schools.
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