North Kesteven District Council says that good financial management means that the government is getting worse.
The authority's guide says he wants to tell the ministers that after receiving their financial statement for 2025/26, they “please do better”.
Although the councils will receive four percent more funds across the country from April, North Kesteven's purchase power will be quiet despite an expected increase in council tax.
The subsidy for rural services, which previously benefited many parts of Lincolnshire, was withdrawn.
It was replaced by a recovery subsidy that aims at urban areas with a high degree of deprivation.
The Council's executive committee discussed how her financial prospects would probably be more difficult next year.
Council member Ian Carrington (Con) said: “Fortunately, because of the historical good management compared to other councils, we are in a good position.
“It feels like the government is being punished – if you have run a tight ship, you will be punished compared to the rest of the pack.”
Richard Wright (Con) The Council Chairman said: “It is difficult to explain the taxpayer of the council members why they see an increase.
“It is a really bad settlement, especially since we have lost the grant for rural services.
“It seems that the better we do, the worse we are rewarded by the central government.
“The only way to have a balanced budget in this position is prudent financial management.
“I would like to send the settlement back and say:” Please do better ', but unfortunately I can't.
“Further requirements for our services are month after month and it will not be cheaper to lead the authority, only more expensive.”
Russell Stone, the deputy managing director of the authority, said: “Sometimes those who do the right things don't necessarily have the advantages.”
The executive committee has proposed that the control tax is increased by 2.61 percent (corresponds to an additional 4.95 GBP for volume D).
This is decided by the Full Council at a later date.
The Ministry of Housing, Communities and the Local Government was contacted for a comment.