Car parking charges look unlikely to be reduced after the move was touted as a way of attracting more shoppers.
Traders in Lytham had appealed to Fylde Borough Council to offer reductions on parking tariffs, which they said were putting off customers.
But the authority said it was already facing a shortfall in parking income of £125,000 and any cut would need to be funded with a rise in council tax.
Councillors have been recommended not to approve the charge reduction.
They will vote on the proposals at a council meeting on Monday.
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