The council has received an "adequate" two-star rating from the commission, which represents a "mixed improvement across priority areas".

The annual audit and inspection letter published this week says further "significant financial savings" have to be made by the council.

Some key services and priorities have improved well, such as working with partners to reduce crime, improving road safety and helping keep children and young people safe.

But others have slipped including adult social care which is now rated a two (adequate), down from three (good) last year.

But recycling is now equal to top-performing county councils.

The detailed report comes after the commission's inspections in 2007.

Council leader Jim Harker said: "So much has happened to improve the council for the people of Northamptonshire since the report's assessments were made.

"We have a new chief executive in place who is driving forward rapid improvements to the way we work. Work is now well underway on the effective leadership review which is seeing a more effective management structure being introduced at reduced cost to help drive forward the
very real service improvements the people of Northamptonshire deserve.

"We have consulted on what the council should be concentrating on in the future and as a result we are about to recommend a new Council Plan to ensure we keep focusing on the priorities of the people.

"We have also completely overhauled the council's programme of major projects designed to ensure the council changes to ensure better customer service and reduced work duplication and bureaucracy.

"With all the improvements we have made since then I look forward with every confidence to the next set of reports."