WEST Somerset Council is performing poorly, takes too long to decide planning applications and needs to do more to help local people find homes they can afford, according to its latest inspection report.
But Audit Commission inspectors who carried out the Comprehensive Area Assessment noted the authority had plans in place for improvement and accepted that the results would take time to deliver.
It is the first time a countywide area assessment has been carried out and, overall, found the support offered to older people in Somerset was outstanding, although affordable housing remained a countywide problem.
On an individual level, Mendip District Council also ranked as "poor", while Taunton Deane and Sedgemoor were "adequate" and Somerset County Council and South Somerset District Council were both deemed to be "performing well". No authority made the top grade of "excellent".
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On the flip side, less than a third of people were happy with the way the council ran things - the lowest rating for any council in Somerset and among the worst nationally.
Cllr Ross said: "The public and the council know that there are areas in which the council could and should improve.
"As the country's smallest district council, we lack staff numbers and finance to significantly speed up the rate of improvement.
"However, we are currently putting the processes into place and planning for longer-term improvements to ensure that services are more cost effective, efficient and more focussed on meeting the diverse needs of our residents."
He said the authority had adopted a seven-point action plan - known as the improvement plan - in 2008 under the guidance of a raft of Government bodies, including the Audit Commission, and was working well to achieve its aims and objectives.
"The council and its partners knew from the outset that it will take several years for the improvement plan to deliver measurable results that will be of lasting benefit.
"We are pleased that our steady progress and some of our strengths have been noted by inspectors, and we remain committed to tackling any outstanding weaknesses that are holding us back," Cllr Ross said.
According to the assessment, the district council made its money go further by working well with other authorities and organisations but did not always get value for money and some services do not perform well.
Councillors and managers also failed to question costs and performance, although councillors were beginning to play a bigger role in how the council was run.
The report said: "The council is determined to improve the way it works.
"It is aware of the challenges it faces and has learned from past mistakes.
"The council wants to do its best for the local community but it hasn't fully decided how it will do this.
"It does not have clear plans and targets for what it wants to achieve. Nor does it have the right information and good ways of checking progress."
The inspectors said the authority had already put measures in place to help people cope with the recession and had good plans to boost the local economy, encourage good health and tackle climate change
It was also doing more to prevent people from becoming homeless, but only 29 new affordable homes had been built in the district in the previous 12 months.
The inspectors added: "The council has spent beyond its means in the past but is now trying to put its finances on a stronger footing.
"The council is quick to learn and is making steady progress, but this is from a low start point so it will take time before local people see any difference.
"A recent restructure of how council staff are organised is saving money and helping them work in better ways.
"But money is still tight and the council is small and has comparatively few staff. The pace of change is putting some managers under strain."

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