Council tax is set to fall for the second year running in Thame.
The good news for residents comes after South Oxfordshire District Council cabinet members agreed to cut council tax by 2.5%.
Should the cabinet decision be approved when full council meets to agree its budget next month, people will see their tax bill fall by £3.02 in 2013/14.
The council’s cabinet has yet to finalise its detailed spending plans for the next financial year but has decided to make a council tax reduction one of the centrepieces of its proposals.
Councillor David Dodds, cabinet member for finance, said: “We have managed our finances well for many years. It is right and proper in these difficult times that we share the benefit of that prudent management with our residents.
“In monetary terms the reduction is small but it shows our intent.
“We reduced council tax this year, we are reducing it again next year and I hope we can continue to do so for the following two years as well.”
Mr Dodds said that despite reducing taxes, the council will still be able to improve services to people.
He said: “As part of the budget I will be introducing schemes to enhance street cleaning, help first time buyers secure mortgages and refurbish public toilets among other things.”
The council currently sets the 15th lowest council tax of any district council in England and this move is expected to consolidate its position even further.