MALVERN Hills District Council is not making satisfactory progress in implementing Best Value, according a report out this week.

But the council says the inspectors who wrote the report did not recognise the financial difficulties it has to deal with.

The inspection was made as part of the Government's Best Value initiative, which places a duty on local councils to deliver the most economic and efficient services possible.

The Audit Commission makes inspections over a five-year cycle to see how the councils are doing.

Andy Walford, of the inspection service, said: "While the council has shown itself to be open to advice and is demonstrating that it's keen to improve, the changes made are not yet compensating for the council's unclear direction and lack of capacity to complete Best Value reviews successfully."

The Audit Commission's key recommendation is that the council should urgently establish additional capacity at senior level to help implement Best Value.

Coun Paul Cummings, of MHDC's executive board, said: "The problem is that we have had great difficulties with our financial situation.

"We are all in favour of Best Value but at the moment balancing our budget must be the priority. I don't think the inspectors fully appreciate that.

"The whole Best Value process has cost us quite a lot; we have had to employ people to deal with it.

"Now they are recommending we take on more senior people and senior people do not come cheap."