People living in Carlisle will not be charged for parking permits, although city parking charges and parking fines are set to rise.
Cumbria County Council allows district authorities to levy a charge for permits, but Carlisle City Council has decided not to do so.
Parking schemes operated by the city council need to be self-financing.
So car park charges will rise from next April, and approval is being sought to raise parking fines by £10.
In addition, the county council's social services unit, which rents space in the civic centre, would be charged for parking.
The new parking fines would be £60, or £30 if paid within 14 days, and are in line with other countywide district authority fines.
Councillor Ray Bloxham, said: "The executive spent a long time deliberating the options.
"I believe the proposals we've chosen today are the best for local residents and the local economy."