DURHAM County Council has won praise from the Government for the way it manages it assets.

To pave the way for a new system of funding capital projects, councils have had to prepared detailed plans about the management of their land and property holdings.

They were asked to explain their day-to-day asset management plans and outline how they would spend capital to ensure the assets were used to best effect.

The council's asset management plan and capital strategy documents were assessed by the Department for Transport, Local Government and the Regions and rated as good.

The council was the only one of 25 in the region, and one of fewer than 19 nationally, to achieve that standard and has won a special funding award of £733,000 as a reward.

The council's capital assets, including offices, schools, libraries, farms and museums, are worth more than £588m.

Council leader Ken Manton said: "We have a duty to ensure that, subject to the resources at our disposal, our capital assets are managed and maintained so that they can be used to their maximum potential and for the maximum benefit. With asset management plans likely to become a key component in the future capital funding system, it is vital that we get them right. It is very reassuring to discover that we have not only got it right but are leading the way on this issue."