Council tax frozen in South Somerset
South Somerset District Council has frozen its share of the council tax bill for local residents.
The Liberal Democrat-run authority also agreed to set up a £100,000 fund to help people living on the Levels and moors affected by the floods.
Council leader Ric Pallister said it had managed to fund the budget through "greater internal efficiencies".
He added it would spend a further £2.2m on "affordable" homes, infrastructure and promoting economic growth.
Mr Pallister said despite facing "severe financial pressures" the council's position was "sound".
"I'm extremely pleased that we have been able to generate the savings needed to balance the books without any impact on the services that matter most to the residents of South Somerset and without the need to raise council tax.
"By generating savings through greater internal efficiencies, we have also enabled additional investment in our economy and housing to meet local need," he added.
The budget means a Band D property owner will continue to pay £1,426.30 per annum for the council, police and fire and rescue share of the bill.
The figure does not include any changes in town or parish precepts.