Pensioners in West Sussex may have to pay less council tax next year.
The leader of the county council is calling for tax rises for the elderly to be capped.
And local government minister Nick Raynsford has already said councils will be free to impose tax limits under new powers likely to be introduced next month.
The proposal would mean the county's pensioners do not have to suffer inflation-busting council tax increases.
The county council wants the Government to reimburse up to £11 million in additional taxes imposed this year when bills rocketed by 18.5 per cent.
Leader Henry Smith said the move would allow the council to concentrate its resources on elderly people.
He said: "We are very conscious of the problem caused by high tax rises, particularly for people like pensioners on fixed incomes, and are anxious to do what we can to protect them.
"That is why we are proposing that council tax increases for pensioners should be capped in line with inflation."
"What we're suggesting is that Government should give us back these taxes. We could then use this money to keep down the council tax burden for pensioners.
"West Sussex has a greater proportion of over-60s than the national average - around 200,000 - which represents 25 per cent of the population.
"Government are saying that they have increased funding to local authorities but what they're not acknowledging is they've also increased the tax burden. It's very much a case of smoke and mirrors."
Richard Wilson, policy officer for Help The Aged, welcomed the council's move.
He said: "Organisations like ours have been inundated with calls and letters from pensioners angry that council tax increases and fearful of the impact of future tax hikes."
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