A proposed budget aims to protect frontline services and invest in education and highways.
Blaenau Gwent County Borough Council has set out its draft budget for 2026/2027, developed through cross-party collaboration between Labour and Independent councillors.
It proposes a 3.75 per cent increase in council tax - lower than the originally planned 4.95 per cent - thanks to an improved funding settlement from Welsh Government and identified efficiencies.
Councillor Steve Thomas, leader of the council, said: "Working constructively with the Independent Group, we are recommending a fair and balanced draft budget that protects essential services while keeping council tax as low as possible in a very difficult financial climate.
"The proposed 3.75 per cent increase is lower than the draft council tax figure of 4.95 per cent and is likely to be one of the lowest percentage increases in Wales.
"It reflects improved Welsh Government funding, identified efficiencies, and, importantly, listening to the feedback from local people."
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The budget will support increased investment in schools, environmental services, and highways.
A 10 per cent rise in school funding is planned, along with £10 million for the Council Tax Reduction Scheme, supporting those households most in need.
Wayne Hodgins, leader of the Independent Group, said: "This draft budget shows what can be achieved when councillors work together constructively to put forward a responsible budget which really focuses on the issues that matter most to our residents.
"We have supported proposals that protect frontline services, increase investment in schools and highways, and provide targeted support for those who need it most, particularly through the council tax reduction scheme."
The majority of properties in the borough would see a weekly increase of 97p for Band A homes and £1.13 for Band B.
The draft budget will be considered by the Corporate Governance and Resources Scrutiny Committee before going to full council for final approval in March.
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