Essex County Council will freeze council tax for the fifth year in a row, but it needs to save £200,000 per day for the next three years.

The authority plans to invest £270million in 2015/16 on projects including transport, education and flood defence.

Councillors insist they can deliver major investments and avoid drastic cuts to key services.

A £5million lump sum from central government as an incentive for freezing tax is equivalent to a one per cent rise.

John Spence, councillor for finance, said: “We were keen to freeze council tax because we represent hard-pressed households across Essex.

“It is our obligation that if we can freeze tax, then we should, and we strive to be a low-tax council.”

The council will dip into its reserves to balance its books for the upcoming year, Mr Spence revealed.

He also said the county’s high tax collection rates - currently 98.3 per cent - help avoid the need to increase rates.

Road investment will include £4million on design and consultation for improving the A120 between Braintree and Colchester and a new north-east Chelmsford bypass.

Nearly £79million will be spent to create 3,000 new primary school places next year, as part of a long-term project to create 12,000 spaces over five years.

Mr Spence said: “We will not shirk from difficult decisions and will maintain our financial disciplines to ensure we provide the support this county needs.”

A final decision on the budget will be made at a full council meeting on February 10.