Cornwall Council will have to cut another £34 million from next year's budget despite plans to add more than £50 a year to the average council tax bill.

The council has released a draft budget and financial plan which it claims is aimed at protecting frontline services from the impact of further cuts in government funding.

The planned budget, the council has said, will provide an additional £11 million for supporting vulnerable people, invest almost £700 million in hundreds of new affordable homes over four years, improve transport links, and grow the economy.

But the council has a target of £107 million in savings over the next four years and the budget, to be considered by the cabinet on Wednesday, will include a 1.97 per cent council tax increase, or 51p a week for a Band D property, and a social care precept levy of two per cent, or 52p a week.

Council leader John Pollard said: “This is a positive plan which focuses on opportunity and investment and supports our aim of improving outcomes for people, places and prosperity across Cornwall.

“The success of our financial planning over the past few years and the opportunities provided by our Devolution Deal to have a greater say in how public sector monies are spent in Cornwall means we are in a much stronger position than many other authorities to deliver a budget which gets the balance right between protecting essential services and increasing council tax levels, and investing in our future.”

Adam Paynter, the cabinet member for resources, added: “This plan focuses on making sure the bins are emptied and our streets are clean, we are delivering high quality services to support and care for vulnerable people and that we have enough school places in the areas we need them.

“We are already protecting key services by delivering them in different ways. We want to build on this success by working with town and parish councils, local residents and voluntary and community organisations to encourage everyone to play their part in providing the local services that people want.

“We will also be working hard to improve our road network, and encourage more people to use public transport by integrating rail, bus and ferry services across Cornwall, and to protect and develop our culture and heritage.”

Under the proposed medium term financial plan around £700m will be invested in capital schemes over four years, including £150m for housing with £43 million for the provision of affordable homes, £140m on road maintenance and £93m on rail links and public transport. Meanwhile £27m will be invested in new fire and rescue vehicles and equipment, and a social care precept levy is expected to generate an additional £5.2m for adult social care, part of an extra £11m investment into the service this year.

But reduced government spending and additional spending pressures have led to a review of the council's medium term plan, meaning the council needs to save £107m over the same period, with a revenue budget for 2017/18 of £492 million and a savings target of £34 million.

Details of the draft budget proposals for 2017/18 and the medium term financial plan have been considered by councillors at a series of special policy advisory meetings held over the past few weeks, while feedback from public consultations will be presented to the cabinet on November 9.

The final decision on the budget and financial plan will be made at a meeting of the full council on November 22.