Bristol Mayor George Fergusson has said his council will not immediately evict tenants unable to pay the new so-called 'bedroom' tax. Under new welfare reforms, housing benefits will be cut for people living in homes with spare rooms.
Bristol City Council has set up a cross-party working group to look into the issue.
Bristol councillors meet this afternoon to discuss the first budget drawn up by elected mayor George Ferguson.
Mr Ferguson is proposing a council tax rise of just below 2%, savings of £35 million and more than 300 job losses.
Bristol's newly-elected Mayor wants more devolved powers to be given to the city.
George Ferguson will put the case in his first meeting with the Government at Westminster today. He says Bristol is ready to be a 'test bed' for radical ideas.