Council tax bills in Pendle will not go up as much after plans to save the authority £441,000 a year were passed.
The council is to be slimmed down after responsibility for highways and housing were transferred to outside bodies.
Its hierarchy will also change with the three executive directors responsible for overseeing departments reduced to two.
Current executive director for services John Kirk will take early retirement and not be replaced.
The 15 departments will be reduced to nine.
Bosses say reorganisation will not affect jobs or levels of service.
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