MALPAS Parish Council has done a U-turn over plans to increase its local tax for the first time in four years.
This week members decided not to put up the precept by 11% because of likely tax increases across the board next year.
'We do not want to add to the burden which may be placed on the people of Malpas,' said Chester City and parish councillor Keith Eben at a meeting this week.
'There will be a number of agencies saying 'more cash, more cash'. There will probably be a need for more cash for the police, more cash for the county and for the city.
'This will mean hardship in some areas but we should look at it on the basis that if we make cuts and some reductions, then we will.'
During last months' meeting the council decided to raise the budget by 11%, from £9,000 to £10,000.
The council had resolved to financially support community groups as well as maintaining the infrastructure of the village when they spoke of the increase.
Clerk Margaret Barker estimated the cost of running the council for the next financial year would be £4,945 including £700 for a new computer.
But councillors had also expressed a wish to continue to support the recreation ground to the tune of £1,000 to help with the proposed shelter for young people.
Another £1,000 had been allocated to the new youth centre which Cllr Eric Beak said would be grate-fully received because of significant running costs.
And a further £1,000 was to be given towards the cost of the new tennis courts at the sports club which are being renovated.
At the time, Cllr Eben said: 'We are still by far the cheapest of the villages in the Cheshire rural area of equivalent size. You are not just talking by £1,000 or so, but by £5,000.'
But the council calculated that up to £2,000 will be left in the parish bank account from this year.
Members agreed that to live on the present budget for the fifth year running would mean that the council will have to be less generous with donations to community organisations.
Vice-chairman Anna Patten, who was also acting as the chair, said: 'We will have to be careful because we need to have a contingency and we can not just run on a hand to mouth basis.
'This council has to ensure that the bank balance is reasonably healthy for the sake of future councils.'
Cllr Charles Higgie said: 'Inevitably, the running costs of the parish council will increase, which means that we will have less money to spend elsewhere.
'But if the rest of the community understands the situation than it is ok.'
Cllr Eric Beak added: 'In general principal, asking for more money in line with inflation is reasonable. But given the political circumstances, it would be more sensible not to.
Out of the seven members sitting on the council, six voted not to increase the precept. One parish councillor abstained.