INSPECTORS have awarded Darlington Borough Council the highest four-star rating.
In its latest inspection by the Audit Commission, the council was rated as "improving well" against other councils.
The council was also urged to improve in some areas including tackling crime, improving performance on waste management and improving grant management agreements.
Darlington Borough Council was among a third of local authorities in the country graded as a four-star council.
The council also received the highest mark for housing and benefit and three stars for children, social care, resources, environment and culture services.
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