Labour councillors in Caerphilly blocked a move by Plaid Cymru councillors to reduce the proposed 6.25% council tax rise from April.
Plaid Cymru Co-Deputy Leader Gary Enright urged full council to cut the increase to 4.25% but Labour outvoted them..
Councillor Gary Enright said that £1.5m should be taken from reserves to keep the council tax bills down.
Councillor Charlotte Bishop, leader of the Plaid Cymru group, criticised the proposed rise, saying there was pressure on families living through austerity and pensioners struggling to make ends meet.
She said: “This budget balances on paper. But it also brings a 6.25% council tax rise. It depends on £5.5 million in-year transformation savings. And it leaves an £8.4 million gap in the years ahead.
“Those are not just figures. There are pressures on families still living through austerity. They are pensioners — who paid into pension schemes their entire working lives — now watching their bills rise faster than their income. They are frontline staff being asked to deliver more at greater pace, under greater strain.
“And while we talk about growth and revenue, too many people in this borough are still waiting for a secure home. Growth must mean security. It must mean dignity. It must mean stability for our communities.
“We cannot continue presenting residents with what feels like a crisis budget every year — asking them to absorb the impact while uncertainty remains ahead.
“Plaid Cymru pushed for additional funding for councils in the Welsh Government budget because we believe public services matter. Because we believe local government must be protected. Because we believe people come first. Balancing the books is not enough.
“A budget is a moral statement. It shows whether we are willing to challenge ongoing austerity — or simply manage it. Our residents deserve more than survival. They deserve fairness. They deserve stability. And they deserve leadership that plans for a future they can trust. And that is what we will continue to stand for.”
Councillor Gary Enright said: ““This Labour administration voted against my motion, instead of supporting and recognising residents' needs. Plaid Cymru in turn voted against the budget on the basis that this Labour administration could not bring themselves to support what is in essence the use of taxpayers money.”
He said that a 4.25% rise would have alleviated some of the cost pressures on family budgets. “To reject our proposals is both shameful and morally wrong.”