Inspectors have criticised Oxford City Council for failing to offer taxpayers value for money, in a report branded "damning" by opposition councillors.

A top-to-toe examination of crucial Town Hall functions was carried out and ranked one to four, with one being the worst and four the best.

In the Audit Commission report, due to be tabled on Tuesday, the public spending watchdog said residents were getting a poor deal with costs "significantly higher than similar councils elsewhere".

Councils across the country are ranked on the services such as leisure, environmental health and car parking - with Oxford historically among the highest spenders in nearly all areas.

And Oxford traditionally levies one of the highest council tax charges - £235.64 for a band D property from April.

The annual report, to be discussed by the council audit and governance committee, is a measure of the council's performance up to the middle of 2007.

City council deputy leader David Rundle said deep-rooted problems could take years to solve.

He said: "This organisation has huge, deep-seated problems built up over decades and turning it around takes time. We've started that, but there's a long way to go. What the organisation needs is radical transformation."

He added that any solution would come from making efficiencies rather than raising council tax.

The authority, run by the Liberal Democrats, has agreed a four per cent rise in council tax.

No one political group controls the Town Hall, which goes to the polls in 10 weeks time with half its 48 seats up for grabs.

Labour group leader Bob Price said: "It's a very damning report that basically says nothing has happened in the past year."

Green group deputy leader Matthew Sellwood added: "Labour mismanaged the council for 25 years and the Liberal Democrats have shown an inability to turn things round - both groups are clearly incompetent."