DURHAM City Council's new bosses have pledged to make it one of the best councils in the country.

The council, which has been at the centre of several controversies including the collapse of the Gala Theatre's management, fell to the Liberal Democrats in May after 20 years of Labour control.

During a state-of-the-city debate, Lib Dem leader Councillor Sue Pitts said people had "had enough of mediocrity, irresponsible financial management and a feeling of neglect".

Council departments had received a string of "second rate or worse" performance assessment by Best Value inspectors and a 3.5 per cent council tax increase was considered by the Office of the Deputy Prime Minister insufficient to improve services.

But she said: "We will make a difference. We will make Durham one of the best councils in the country by careful financial management and involving people in wide consultation."

She said state-of-the-city debates would be part of ongoing public discussion about the council's work.

The Labour group's new leader, Councillor David Bell, said his party had left a strong base for the Lib Dems to build on.

Afterwards, he claimed the Lib Dems had not lived up to their promise to be fair, open and honest.