Problems left by poor leadership resulted in people in Chester-le-Street getting a bottom-rated council service, says a report out this week.

The Comprehensive Performance Assessment, published by the Audit Commission, rates the district council's performance as poor.

The assessment is designed to show people how their local authorities are performing. Chester-le-Street was the only council in County Durham to receive the lowest possible rating.

Derwentside District Council was rated good, Durham City fair and Easington was rated excellent.

Audit Commission senior manager Sarah Diggle said: "Chester-le-Street District Council is now showing signs of recovery but it will take time to tackle the problems left by poor political and managerial leadership."

According to the report, the council has not consulted people enough. Its housing service and housing benefits are poor while planning for improving services is weak.

The report also says that the council struggles to manage its resources, such as the housing capital programme, where only ten per cent of the £3.5m budget has been spent.

It doesn't have a permanent chief executive and has suffered a number of staffing issues, including high sickness and employee turnover.

The assessment found the council has been good in reducing crime by working closely with the police.

Mrs Diggle said: "We have recommended that the council use the report to help tackle its weaknesses, and would expect the council to make its improvement plans public. We will be back to report on progress. The end result should be better services for the people of Chester-le-Street."

Mrs Diggle said the council recognised the severity of the situation and was a more committed organisation than it was six months ago.

It will focus on developing a recovery plan, setting out what it needs to do to improve, with support from the Audit Commission and central government.

Temporary chief executive Bernadette Marjoram said: "The council accepts the findings of the report, which identifies some of the improvements made by the new council elected in 2003.

"The council is now actively engaged with the Office of the Deputy Prime Minister to address the challenges set out in the report and is committed to make the necessary changes to ensure the community of Chester-le-Street has improved services in the near future."