People living in Hyndburn could have their council tax bills frozen for the second year in a row following a council underspend of £750,000.
Tory council leader Peter Britcliffe said the freeze on rates would be a boost to residents in the borough if achieved.
The underspend was revealed at Hyndburn’s cabinet meeting on Tuesday.
But leader of the opposition, Labour councillor Miles Parkinson, has concerns about cuts to front line vacancies despite the freeze.
More than £75,000 worth of savings were also made by cutting staff vehicles from the council’s fleet and from councillors’ expenses. The surplus when the financial year ends in March will be £768,465.
Coun Britcliffe said after the meeting: "Watch my lips – we might be able to freeze council tax for the second consecutive year.
"We are looking at an underspend of £750,000. It’s excellent news and will help to try and secure this council tax freeze."
He added: "We all know there are problems in Hyndburn but we can’t afford to take this out on residents by putting a big increase on council tax in the borough. We are working very hard to now try to bring that about.
"If we manage to achieve it, it will be the third time over a period of about 10 years that we’ve achieved it.
"I doubt whether you will be able to find three other councils who on three other occasions in the last 10 years have frozen their council tax.
"I’m very hopeful we will be able to achieve a remarkable hat-trick."
But Coun Parkinson said there is an incentive in place nationally – under the coalition government – for authorities to not increase council tax by more than 2.5 per cent.
He said: "If council tax went up more than 2.5 per cent, a council’s individual government settle grant would reduce accordingly.
"Council tax is likely to be frozen across the board, but we will have to wait and see what the police and fire service do.
"People can’t afford an increase in council tax in Hyndburn. A freeze is the only viable option for the residents.
"Should we be elected in May we will review what has been done by the Conservatives.
"My concern is the vacancies that have gone throughout the year and whether the departments are running effectively.
"We also don’t want front line services such as street cleaning to deteriorate."
Coun Marlene Howarth, who is in charge of finance, said: "A lot of the savings are split up. Some of it has occurred through not taking on new employees. We are spreading it among the work force instead of employing someone else.
"There are loads of savings that have been made in every area.
"We have suffered tremendous cuts this time through the mess the Labour government made. We are all having to suffer from it. We have to make sure our front line services carry on.
"That has to be our priority so to do that we have to make cuts.
"That £750,000 will help to alleviate the losses we are going to suffer next year."