TWO North-East councils are in the running for the title of the UK's leading local authority after being shortlisted for a national award yesterday.

Stockton Borough Council and Sunderland City Council are two of five local authorities shortlisted for the "council Oscars", the Council of the Year competition, which is open to 300 councils across Britain.

The authorities have been shortlisted as overall council of the year, while Stockton has also been shortlisted in the legal team of the year category.

The main award takes into account a wide range of measures over a 12 months, and is one of the highest awards a local authority can receive.

Councillor Bob Gibson, Stockton council leader, said: "This is tremendous news for the council, its employees, partners, and the people who rely on our services, as this annual award rewards excellence in local government.

"To reach the shortlist stage is a reflection of the hard work, commitment and achievements of a great many people across the council. These have put Stockton at the forefront of modern local government."

During the period covered by the award, Stockton council's finance team won a number of national and regional awards, and the housing service was named as best in the North-East for the third year running.

Sunderland was shortlisted after improving standards in education, achieving beacon council status through sport and tourism, and overseeing a £320m investment in the city centre.

Colin Sinclair, Sunderland council's chief executive said: "The council had an exceptional year in terms of improving people's lives and transforming Sunderland. Winning the award would be a real coup for both the council and the people of Sunderland."

Stockton and Sunderland are joined by Blackburn with Darwen Borough Council, Camden Borough Council and Chichester District Council on the shortlist. The winner will be announced on March 12.