THE biggest councils in the region have come out on top in a nationwide performance league table for the second consecutive year.

Every local authority in the North-East is rated as "improving well" and seven of them have achieved the highest ranking of four stars.

The results of the Audit Commission study - released today - are the first based on a new framework reflecting new challenges facing councils and the public's rising expectations.

Commission chairman James Strachan last night welcomed the results, but warned town hall bosses that they must improve value for money for taxpayers.

Across England, two-thirds of the 150 councils achieved the top two categories of three or four stars, and at least half in every region were found to be either "improving strongly" or "improving well".

But the study also shows ten authorities are failing to deliver services of an acceptable standard and achieved only one star or none at all.

The seven North-East councils awarded four stars are the unitary authorities of Darlington, Hartlepool, Middlesbrough, Redcar and Cleveland, Stockton and Sunderland, and Durham County Council.

Councillor Mick Henry, chairman of the Association of North East Councils, said: "I am delighted with these results, which demonstrate that the North-East has the best-performing councils in England.

"They are testimony to local authorities' commitment to providing excellent service, standards of care, value for money and continuous improvement. I believe this all contributes to people's quality of life.

"The results in the Tees Valley, with all five local authorities rated in the top four-star category, is a particularly impressive achievement."

Hartlepool Mayor Stuart Drummond said: "We should not underestimate the importance of the inspection, which is by far the most rigorous examination of council performance, and it tells us that, overall, we are providing excellent services for the people of our town."

The leader of Durham County Council, Ken Manton, said of the results: "The Audit Commission raised the bar for this year's inspection process and set tough new rules and new yardsticks against which a council's performance could be measured.

"We're delighted to have maintained our top ranking, which this year rates us as a 'four-star' council rather than 'excellent' - but however they score it, we're still one of the best."