COUNCILS across the region have outperformed their counter-parts in the rest of England for the third year running, according to the latest assessment by the Audit Commission.

The watchdog today publishes its annual Comprehensive Performance Assessment, which shows that 75 per cent of unitary and county councils in the region achieved the top rating of four stars.

North Yorkshire County Council, Gateshead and South Tyneside councils have all moved up from three stars to four, joining top achievers Darlington, Durham, Hartlepool, Middlesbrough, Redcar and Cleveland, Stockton, and Sunderland in gaining the highest star rating.

In the assessment of 150 authorities, Stockton Borough Council was named in the top ten in the country - and becomes the first council outside the big Metropolitan areas to achieve four stars and be simultaneously described as "improving strongly".

Councillor Bob Gibson, leader of Stockton council, said he was absolutely thrilled that the authority had been named in the top ten and added: "I'm particularly pleased these ratings reflect survey findings showing growing satisfaction of local people both with their services and the area generally.

"We might have received the highest possible ratings, but we certainly don't intend to stand still. Now our job is to rise to the challenge and maintain our ratings throughout 2007 and beyond - and that's what we are determined to achieve."

North Yorkshire County Council moved from three stars to four. Council leader John Weighell said: "It's a ringing endorsement of what people who live and work in North Yorkshire already know - that the county council delivers excellent local services and provides real value for money for the county's taxpayers.

"But we shan't rest on our laurels. We recognise there is still scope to improve further and we're confident that the audit commission's next inspection next year will show we have done this."

Meanwhile Durham County Council achieved a four-star rating for the third successive year.

Council leader Albert Nugent said: "The people of County Durham deserve top quality services and these four stars confirm that we are doing our best for local residents.

" Every day I see the vital contribution we are making to this area, and I know the hard work we do really does make a difference to improving the quality of people's lives."

Nationally, for the first time since the star rating system was introduced in 2002, none of the councils which were assessed received a zero rating.

The Association of North East Councils yesterday praised the "tremendous achievement" of the region's local authorities.

Councillor Mick Henry, association chairman, said: "The confirmation that the North-East region continues to have the best performing councils in England is a tremendous achievement."

* Sedgefield Borough Council was among only 24 in the UK to achieve top marks.

Full results are available at www.socitm.gov.uk