Selby District Council's latest performance review was today branded a "damning indictment of Labour rule".

The independent audit and inspection report for 2002 censures the council for soaring rent and council tax arrears and for poor financial control of its housing maintenance department.

It also says that urgent action is required to stem the increasing numbers of staff quitting the Civic Centre, which is "impacting on service delivery".

The report has not yet been made public, but the Evening Press has obtained a copy.

The district auditor's criticism has already prompted the council's scrutiny committee to call a special meeting later this month.

The council's Conservative group leader, Mark Crane, said today the report was a damning indictment of eight years of Labour rule in Selby.

He said: "Issues that were flagged up a year ago haven't been addressed.

"We have been warning for over a year of financial control weaknesses in the housing maintenance unit, but clearly lessons haven't been learned."

The report reveals that council tax and non-domestic rate arrears soared last year by £500,000 or 13 per cent, and now stand at more than £4 million.

Rent arrears increased from £500,000 to £700,000, almost eight per cent of the total amount due.

District auditor Mark Kirkham said that urgent action was required to ensure the money was collected.

The council was also rapped over the knuckles for its "best value" policies, which were still not seen as an integral part of delivering services.

The Civic Centre's information technology also came under fire. Inspectors described it as "a poor service with poor prospects for improvement."

Independent councillor John McCartney said: "This report smacks of complacency and the council needs to get its act together."

The council's Labour group leader Dean Howson said today: "I have never known an audit commission report heap praise on anybody.

"We are providing a good service for residents, although we have to improve on rent and council tax arrears."

Council chief executive Martin Connor said officers and members were committed to addressing issues raised in the report - but some would take longer to resolve because of limited resources.

Updated: 15:51 Wednesday, January 15, 2003