THE Audit Commission has praised Kennet District Council for its financial management, which it says remains a strength.

However, the report also recognised that the council "faces a significant challenge in maintaining existing services and responding to new Government initiatives".

Council leader Chris Humphries said: "It is always gratifying when outside inspectors and auditors recognise that Kennet District Council is a well run council.

"I thank all councillors and staff who have contributed to that.

"I was pleased that the Audit Commission recognised that the Government is giving us more responsibilities and less financial support in real terms.

"This means that hard decisions will have to be made. However, we have faced this problem for the past two years, we have managed the problem and we will do so again."