DURHAM County Council's economic regeneration efforts have won praise from a financial watchdog.

The Audit Commission has given the Labour-run authority's economic development and regeneration service a two-star, or "good", rating.

Inspectors said the authority had "a long and successful track record of physically transforming the county, has attracted 50,000 jobs over 20 years, responds well to change and plays an important strategic role".

The review concluded that the service had "prom-ising potential for improvement".

The inspectors said the County Durham Development Company set up by the council to attract investment was well regarded by client companies.

Although the county's economic problems remained "massive", the report said there were promising signs that the council would continue to rise to the challenge.

The inspectors did have some criticisms and recommendations to make about the service.

The report said: "Low levels of learning and skills, and social exclusion are major problems in County Durham, and greater awareness of the council's economic regeneration activity would help to raise the aspirations of local people.