Worst councils are new stars

Hackney and Lambeth have been singled out for improved performances that promise to shed their reputation as bywords for incompetence and wastefulness.

The boroughs - both run by Labour administrations - were among nine of the capital's 33 councils said to be "improving strongly" by watchdog the Audit Commission.

Six of these - Camden, the City of London Corporation, Kensington & Chelsea, Sutton, Wandsworth and Westminster - achieved four stars out of four, placing them among the country's 13 elite authorities. But Bromley dropped out of the elite.

Hackney was awarded three stars - up one on last year - while Lambeth also received three, two more than last year. Harrow is the capital's lowest ranked borough with two stars.

Commission chairman Michael O'Higgins said: "For anyone who knows the history of local government in London, it's really good news to see both Hackney and Lambeth in the three-star category."

Commission chief executive Steve Bundred added: "If you look at these results overall, you will find London is doing extremely well. If you take the councils that are four-star and improving strongly, quite a number of them are London boroughs."

The scores, known as comprehensive-performance assessments, measure seven key aspects of a council's annual performance, including its use of resources, education, adult social care, housing and environment.

They also assess each authority's "direction of travel" - how it has performed in the areas it has chosen to prioritise.

When the system was launched in 2002, Hackney was ranked the worst council in England.

The Government had been forced to bail it out with a £25 million grant to keep its services going, millions in council tax was uncollected, 120,000 benefit claims went unpaid and its streets were littered with rubbish.

Now the borough is planning to freeze its share of council tax for the third year running and has been praised for its strong management, housing services, recycling rates, and time to process benefit claims.

Jules Pipe, the borough's directly elected executive mayor, said: "This is an excellent achievement for Hackney and a ringing endorsement of the council's improving services and financial stability."

Last year, Lambeth was adjudged the worst council in London, having lost a star gained during Lib-Dem control and facing claims of cutting services while hiking council tax bills.

Now it is ranked the fastest mproving London council, exceeding targets to cut crime and increase visitor numbers to libraries, and creating one of the country's highest performing housing benefits teams.

Council leader Steve Reed said: "This marks a turning point for Lambeth. The days of 'loony Lambeth' are now behind us."

CASE STUDY: HACKNEY TRANSFORMED

In 2002, Hackney was ranked the worst council in England and was on the verge of bankruptcy having gone five years without one political party in control.

But in December came confirmation that major change had been achieved: the borough's executive mayor, Jules Pipe, was to be awarded a CBE in the Queen's New Year's honours list.

Mr Pipe, a former journalist, was credited with driving the transformation, confirmed by today's Audit Commission report.

Despite comments from Home Secretary Jacqui Smith that she would be frightened to walk around Hackney at night, it is now seen as a decent option for the middle classes in search of a semi-affordable home.

The borough has seen a proliferation of delis, boutiques and trendy bars. Stoke Newington has long been considered an extension of Islington but now includes London Fields and Hoxton.

All this has been achieved with strong financial management at the town hall and political leadership - aided by the new mayoral system.

Elected in 2002, Mr Pipe has been able to drive through New Labour change without being blocked by old-style infighting. Schools are run by an arm's-length trust and plans have been announced for the fourth city academy, supported by the City of London Corporation and KPMG.

The latest green initiative is to rid the borough of plastic bags, the Clissold Leisure Centre, which ran £22million over budget, should finally reopen this year and the London Fields lido has been transformed. And with reason to be proud of the area, an "I Love Hackney" campaign was launched.