LOCAL government inspectors have branded a local council's benefits and tax collection a 'one-star service.'

In a new report published by independent watchdog, the Audit Commission, Wyre Borough Council -- which collects £60m each year in council tax -- has been awarded one star out of a possible three for its service.

Following a recent inspection of the council the report highlights Wyre has having a number of positive aspects such as the Poulton Civic Centre (which is of a "high standard"), good disabled access to all council-owned offices, "courteous and helpful" counter staff, a freephone facility, home visiting service for the immobile and fraud prevention measures.

But it was found that there is low satisfaction with telephone and interview facilities, limited website and electronic payment services and non-standard issue letters which have been described as "unnecessarily formal and abrupt".

It has been ruled that the council needs to "listen to customers more and reduce staff turnover" after its benefits and council tax collection service was judged to be "fair, with poor prospects for improvement."

Audit Commission spokesman, Mike Thomas said: "Wyre Borough Council has good measures in place to prevent fraud.

"The benefits service has begun to improve and customers who visit council offices are generally satisfied with the level of service they receive.

"However, there are many weaknesses, including little effort to encourage people to claim the benefits they are entitled to. The prospects for future improvement are currently hampered by high staff turnover and inadequate public consultation about what improvements they would like to see."

A number of recommendations have now been put forward by Audit Commission officials in a bid to improve the council's service.

These include taking steps to encourage people to apply for benefits and discounts, reduce overpayments and improve employment conditions, possibly by introducing more flexible working conditions.

In addition to this, Commission officials have suggested that the council liaise with agencies such as the Citizen's Advice Bureau to find a way to improve collection from those residents who fall behind with council tax payments.

But Wyre council leader and Conservative councillor, Alan Vincent, has defended the council saying that the judgement was based on dated information and claims improvements have already been made to the service.

Cllr Vincent said: "This judgement was based on performance information nearly two years old and, contrary to the inspectors' judgements, significant improvements have been made since that time.

"The latest published Government figures show Wyre to be in the top 16 per cent of District Councils nationally as regards improvement in its collection performance."

Wyre's Portfolio Holder for Resources, Councillor Vivien Taylor said: "It was disappointing that the inspectors found fault with many of the facilities provided to improve the service to our customers and have ignored the service's success in obtaining the Charter Mark award for excellent service."