Hopes that Medway could achieve the top four star local government rating have been dashed for a sixth year.

Continued minimum performances on its cultural offer and its children's services held the council back.

Last week the council voted to spend £360,000 over the next three years on improving books, plus new readers' computers in a bid to improve the libraries, and announced a new Englishness festival to be staged this year. The Will Adams festival was also rescued with last minute funds.

"Teenage conceptions have increased and health outcomes for children and young people are inadequate," said the Audit Commission.

It is working closely with NHS Medway to cut teenage pregnancies and improve children's health.

Overall, Medway is rated a three star 'good' authority.

One thing which delighted council officials was its housing service. It was damned last year but this year gained four stars.

However, the audit warned it still has serious weaknesses.

Council Leader Rodney Chambers (Con), called it a remarkable achievement.

"I am particularly pleased to note that the Audit Commission appreciated the steps we have been taking to tackle problems in our housing service.

"Our rating for housing services leapt from two (adequate performance) to four (performing strongly).

"The auditors highlighted more elderly residents were being helped to live.

Educational results are improving, recycling and waste collection scored well, crime was reducing, and more

people felt safe.

"We are on track, but we are not complacent. We will continue to strive to provide the best services we can for the people of Medway," Cllr Chambers said.

It is the final such assessment by the Audit Commission.

A new area assessment judging the effectiveness of the council, police, health and voluntary bodies will be introduced this year.