Councillors in Whaley Bridge have agreed to limit any rise in their town council precept to a maximum of five per cent.
With a number of schemes set to require funding, including a neighbourhood plan to act as a blueprint for the future development of the town, members agreed a rise was needed.
They said that although the headline figure may seem large they highlighted that such a rise would in effect only see an increase of a few pounds to the town council element of the council tax bill.
The majority of council tax goes to the County Council, followed by a smaller amount to High Peak Borough Council, fire and police.
In areas with a parish council it makes up just one per cent of the total bill.
Council Chairman Jon Goldfinch, giving an example said: “A 12 per cent rise would be a £3 a year increase.
“It seems like a large increase but the actual figure is less than the price of a pint.”
Members agreed that although a higher rise could be justified the percentage would be seen as too high by the public, particularly in the current financial climate.
A working group is to look at the budget for 2012/2013 and a decision on the precept will be made at the February town council meeting.