DURHAM County Council plans to win promotion to the premier league of councils in the next two years.
The Labour-run council was rated good by inspectors who carried out its Comprehensive Performance Assessment just before Christmas.
But it aims to join 22 councils, including neighbours Sunderland, Gateshead and Hartlepool, who were deemed to be excellent.
The inspectors said Durham delivered a consistent level of quality local services and has a good record of achievement.
But they highlighted areas of improvement, including personal social services for both adults and children and school pupils' GCSE results.
Already the council has announced it is putting an extra £2m into improving exam performance.
It is drawing up an action plan called The Chance Programme in a bid to win the coveted excellent designation.
Council leader Ken Manton said it would look at key aspects of the way the council worked, "address our weaknesses and build on the good things that we already do".
The council was disappointed with its financial settlement from the Government - particularly in social services where some southern authorities got bigger grant increases.
But chief executive Kingsley Smith said the council was making financial plans for the coming three years.
"We will continue our drive to provide better services for elderly people," he said.
"We have already made a good start with our modernisation programme, building new extra care homes."
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