Nottinghamshire County Council has said that the planned tax hike as part of the huge cuts set to be implemented next year could be capped at 1.99 per cent.
The council said it was planning a rise in tax between 1.99 per cent and five per cent to help bridge the £154 million predicted shortfall.
However, it has been confirmed that any proposal to increase the tax by more than 1.99 per cent is subject to a referendum.
The council says a reduction in Government grants is forcing them into the sweeping changes, which will include a cutting 800 jobs and slashing services across the board.
People still have a chance to have their say on the cuts with a consultation period open until 17th January.