A LOCAL authority is starting to turn the corner in its bid to improve its financial standing, but must not take its foot off the accelerator yet, said the district auditor.

Members of Teesdale District Council were pleased to hear from Mr David Parkin that he was more positive about their position, with progress made in several areas, which he had flagged up in his report.

He urged them not to be complacent, as there was much work still to do. The general fund and housing revenue account were both better than expected, with the general fund increasing to £126,000 in March and the HRA more than doubling to £292,000. But there was still cause for concern over the financial health of the authority and would be until it reached the goal of having £200,000 in the general fund balance by 2004. "I would like to see that amount in reserve because last year the council was potentially facing tipping over the edge," said Mr Parkin.

The authority was performing well in some areas, but the cost of housing repairs appeared high compared to other authorities. He suggested targeting resources from the more successful of the council's services to maintain standards in other areas.

Audit manager Mr Gavin Barker said the council now had a corporate plan on the agenda and that was the first step to setting out its priorities. It now needed to work with staff at all levels as to see how those priorities were met.

"It is very important for members to get staff on board in the process because we found there was a definite communications problem, with some staff feeling that members did not understand the job that officers do," said Mr Barker.

"Chief officers need to put forward options to members, with a need to be clear about measuring progress," he added.

Coun Robin Simpson was worried about the suggestion to lower standards to maintain others, feeling taxpayers would not stand for a poorer quality service, asking about the possible transfer of housing stock and what it would mean for the authority.

But Coun Ken Robinson said the HRA was separate from the general fund and he found it difficult to comprehend that there were complaints about the cost of housing repairs when the HRA was very healthy and they were running a good ship.

"How can we charge lower rents and still remain in the black?" he asked.

Mr Barker said they had merely noted that the cost per individual repair was very high.

"If the repairs were done in a different way you might be able to get more for your money," he added.

This dismayed Coun Richard Betton, who felt there were contrary comments in the auditors' report.

"The word cowboy springs to mind," he said. "Do you want us to do those kind of repairs so that everyone can have a repair each year? The cost of our repairs might be comparatively expensive, but the fact that we don't have a lot of them is because we do them properly when they are needed, rather than superficial repairs that cost more in the long run."

But Mr Barker said the council's director had not been surprised by their findings.

"We only confirmed what he had been thinking," he added.

Coun Newton Wood ended the debate by saying they would be looking at a rise of 13pc in their portion of the council tax if they implemented all the things they had been asked to do.

"I don't want you to come back to us if we cut services on your recommendations," he said