The leader of Shepway Council, which had its budget capped by the government after proposing a 39% council tax rise, has survived a no confidence debate.
Shepway's council leader says she has the support of her group
Linda Cufley was criticised by fellow Liberal Democrat members after the council was penalised.
She said: "I have the support of my group and will carry on as group leader and leader of the council as long as people want me to."
She said a no confidence vote did not happen after an amendment was carried.
Speaking on BBC Radio Kent on Friday, after a meeting of the Liberal Democrat group continued late into Thursday night, she said: "We had a full and frank discussion.
"I won comfortably.
"We have come out of this as a stronger group and a united group."
She added that a cabinet meeting was being held on Friday morning, to finalise a report which would be put before the council.
The authority had wanted to raise council tax by nearly 40% and later reduced the initial proposed rise to 29%.
Local Government Minister Nick Raynsford then ordered the authority to slash the budget further to 20% meaning savings of £600,000 would have to be found.
At the time, the council said it did not plan to cut any front-line services because of the reduction.
The Liberal Democrat-controlled council said it was left a legacy of financial difficulties from the previous Conservative administration.
The first reduction from 39% to 29% saw the authority faced with saving £674,000.
It decided to save some of the money by getting rid of grass verge cutting which was costing tax payers £50,000 a year.
It was also proposed to shut all public toilets in the district but the authority backed down and agreed to keep some open.