AUDITORS say Durham City Council's £1m-plus computer service is poor and will not improve.

The Audit Commission's best value inspection team says that users of the Labour-run council's information technology (IT) service are not satisfied with it, despite the efforts of helpful and knowledgeable staff.

Lead inspector Mick Hannon said: "The council does have ambitious plans for the future delivery of services through IT, but its improvement plan is weak.

"It needs to develop service aims that are clear and customer-focused, take steps to ensure it provides value for money and strengthen the service's leadership and management.

"Only by making a step change can the council expect to match top performing councils and deliver the Government's modernisation agenda."

A council spokeswoman said the commission's inspection process was flawed and that the report was inaccurate and poorly researched.

The inspectors were aware the council's "electronic government strategy" had been approved by the Government and that the framework for a high quality service was being put in place.

"Substantial extra funds are currently being allocated to the IT service to ensure it continues to improve," said the spokeswoman.

"We have a committed staff, a framework to strengthen the delivery of the service and every reason to believe our IT department will be able to provide a quality service in the future.'