Oswestry Borough Council, which is one of the smallest in Britain, has been praised by the district auditor for improving services to the public.

Although council tax and housing rents collection remains a problem the council, the sixth smallest in the country, has some of the best results in the country for recycling and for tackling graffiti and litter.

District Auditor Tony Corcoran in his annual audit inspection, says the council, assessed as good four years ago, continues to make steady progress towards it priorities.

But, while praising the council for being at the forefront of plans for a unitary authority for Shropshire, he says the impending creation of a unitary council has led to a delay in some of the borough’s own schemes.

These include a cultural strategy and the council’s customer relations system.

Work on the vote for the possible transfer of the borough’s council housing, which met with a no vote from tenants, had a negative impact on the performance of the housing department.

However Mr Corcoran recognises that the council is now making plans to meet the challenge of keeping those council houses.

Improving recreation had also been difficult with the council’s plans for a new leisure centre still at an early stage and there were inadequacies in the existing sport and leisure provision, his letter says.

“However the council has continued to make the best use of its limited provision with the number of people using the leisure facilities increasing by 3.5 per cent, exceeding the national target.”

Mr Corcoran will attend a council meeting on Tuesday.