All 150 single tier and county councils in the UK met or exceeded the minimum financial management requirements set by the Audit Commission in 2006.

Three-quarters of the councils assessed by the independent body were found to surpass resourcing expectations, demonstrating a significant improvement in public money management nationwide.

Fifteen councils managed the highest possible overall score, while East Riding of Yorkshire achieved top marks in each sector under review, including internal control and financial management.

Yet there is still work to be done, particularly if the chancellor restricts council budgets - as he has threatened - and the Local Government White Paper’s efficiency targets loom large, according to Audit Commission chief executive Steve Bundred.

“The performance of local councils has improved considerably over recent years and these scores for use of resources are a sign that this positive trend is set to continue,” he said.

“All residents want their councils to use limited resources in the most effective way and these results show that councils recognise the importance of delivering value for money and better financial management.

“Of course, there is still room for improvement, but we should not underestimate this significant achievement,” Mr Bundred concluded.

The annual assessment includes all London boroughs, metropolitan boroughs and unitary councils in the UK, as well as county authorities. The Audit Commission will publish its yearly appraisal of the country’s 238 district councils later in the year.

© Adfero Ltd