THE annual auditor's report presented to Lancashire County Council cabinet has concluded the authority has high standards of financial control and it prudent in the way it manages services.

The Auditor picked out several areas for comment including improvements in social services, the council's smooth transition to its new political system and continuing improvements to special education.

But it added that progress has been slow and called for three key areas to be addressed, including the high overall spend on special education, the continued high number of pupils in special schools and the need to change the emphasis from statutory provision to prevention and early intervention.

County Council leader County Coun Hazel Harding said: "I very much welcome the positive comments made by the Auditor in his Annual Letter.

"The county council has faced many challenges over the past year, including the setting up of the new constitution and appointment of the cabinet.

"We recognise the need to move faster in certain areas and the importance of partnership working if we are to achieve our goals.

"The advice offered by the District Auditor is very helpful and his comments are a reassurance that we are moving in the right direction as we work towards providing the people of Lancashire with even better local services."