A COUNCIL in the North-East has become one of the first in the country to sign an agreement with the Government to improve services.

Middlesbrough Borough Council reached a landmark yesterday when its leader and chief executive signed a Public Service Agreement (PSA), pledging to improve and modernise services.

Among its promises are those to achieve better exam results, reduce truancy, create a healthier environment and offer more support for youngsters in care.

The council was one of only six nationwide to sign up for the flagship programme at a launch hosted by Local Government Minister Hilary Armstrong and Treasury Minister Andrew Smith.

The scheme, designed to give local authorities more freedom in return for reaching agreed targets, could result in an extra £3.75m for Middlesbrough if local targets are met.

Council leader Ken Walker said: "We are delighted to be one of the first councils in the country to establish a Public Service Agreement.

"PSAs are a key element of the partnership between local and central Government and will play an important part in our continued drive to improve and modernise services and improve the quality of life of Middlesbrough residents.

"The PSA covers key local and national priorities - education, the environment and health. We are delighted that the Government has given us this chance to make a difference."

Among Middlesbrough's pledges are to reduce truancy by ten per cent, raise the percentage of ethnic minority pupils achieving five or more A-C grade GCSE's from 27 to 40, increase the number of youngsters taking up drug treatment programmes, and reduce traffic congestion by ten per cent