A TEESSIDE council has been handed more than £2.6m in Government grants as a reward for its improved performance.

Stockton Borough Council is one of 15 councils across the UK that piloted a Local Public Service Agreement (PSA) scheme.

The council said it would reinvest the money, which will be received over the next two years.

It has been credited by the Government with improving performance across a range of services.

A council spokeswoman said: "Areas we have delivered on include helping more elderly people to lead independent lives and enabling more people to successfully find employment through the New Deal 18-24 programme.

"The council's care for your area team has achieved significant improvements to highway cleanliness.

"Local PSAs were piloted in 2000 with the agreements running for three years."

Another area highlighted by Local Government Minister Nick Raynsford was to increase the energy efficiency of council housing.

In total, more than £93m has been handed out to 15 local authorities across the country, two-thirds of the potential reward grant.

In the North-East, Sunderland and Newcastle City councils were also singled out for grants with each authority receiving about £4m each.