Blackpool is currently a shire district council with a net revenue budget of£20m and employing about 1,200 staff. As a unitary authority it will employ about 4,000 people and have a net revenue budget of£110m.
The panel decided that allowances should be set using a local benchmark - the average gross weekly earnings of non-manual adult workers in the Blackpool area which is£57.98 per day.
Attendance allowances are recommended to drop to£11.60, from£17.55 and the basic allowance be set at£2,316 per member per year.
The panel also recommends that the allowance include a detailed list of bodies and mettings for which the attendance allowance would not be payable.
The scheme would cost about£176,000 a year - which is half of allowance schemes being adopted by other unitary councils.
The proposals will go before the council's policy and resources committee on October 8.