INSPECTORS say Durham City Council's economic development unit is good but has uncertain prospects for improvement.

An Audit Commission team gave the unit a two-star rating, saying: "The unit has a good record on generating jobs and supporting the creation of new businesses and inward investment through a number of major projects.''

The inspectors praised the Dragonville partnership with Tesco and the Sherburn Road Estate revamp.

However they said there was a lack of analysis of the area's future needs.