KEY council services on Teesside could be given a £5m cash boost if targets are met to improve standards.

Stockton Borough Council has agreed with the Government to reach a range of challenging objectives to improve local services in the town.

If the targets, drawn up under a Local Public Service Agreement scheme, are met, the council will earn a reward grant equivalent to two-and-a-half per cent of its yearly budget, which can then be ploughed back into local services.

This will mean an extra £5m to be spent on key services, such as education, the elderly and youth offending.

Signing the agreement on behalf of Stockton council, chief executive George Garlick said: "The agreement is part of our continuing drive to raise service standards for the people of the borough.

"Whilst we are rated as an excellent council already, we believe passionately in constant improvement.

"Through the targets we have negotiated, we are looking to build a better future for all residents within the borough, but, in particular the most vulnerable."

Local government minister Phil Woolas said: "I would like to congratulate Stockton Borough Council on signing a second generation Local Public Service Agreement.

"The agreement provides a real incentive for the council to raise standards across a range of key areas, such as education, youth re-offending and care of the elderly.

"These issues are already high on the agenda for local residents and I am confident that the new targets will provide further impetus for driving up delivery."

If the council achieves the targets set out in its agreement, the Government will pay out a maximum reward grant of £5,050,588.

In addition, and irrespective of achievement of targets, the Government will pay the council a grant of almost £1m this year, which will contribute to the costs of a range of projects identified by the council to help it succeed in achieving targets.