The authority currently has one of the lowest charges in the country and is also debt free.
Leader of the Council, Cllr. Burt Keimach, Conservative (Market Rasen Ward), said:
"We received the worst district council settlement on government funding in Lincolnshire and among one of the worst in the country, but we are proposing no council tax rise.The council needs to save £2.5m over the next two years and another £250,000 as a result of other pressures, such as inflation. Although the council's budget will not be officially agreed until Monday, 7th March 2011, there is cause for optomism.
"We still have a lot of work to do, but early indications show we will be able to balance our budget for this financial year without impacting on key services, making expensive redundancies or increasing council tax."