The Audit Commission has praised Oxford City Council for improving its performance during the past year.

In the watchdog's annual inspection letter, it noted the aim of offering better value for money, saying: "The pace of change and improvement has been impressive."

The last year has been one of greater focus and determination for Oxford City Council and the pace of change and improvement has been impressive."

It said there had been a better focus on value for money, with £3m of efficiency savings achieved in 2007/08 and a further £3.5m planned for 2008/09 Chief executive Peter Sloman said: "This letter is a vast improvement on previous annual audit letters and reflects just how far we've come in twelve months.

"It says the changes that we are making are real and that they are taking the council in the right direction.

"We want Oxford City Council to become a world-class organisation worthy of all our residents and we know that there is much more hard work to be done."