Housing benefit services must be targeted better to ensure help is given to people most in need, council bosses have been told.
But Mid Sussex District Council's revenue and benefits service was praised by inspectors from the Audit Commission, who awarded it two out of a possible three stars.
The authority was noted for being in the top 25 per cent of similar authorities for its council tax collection rate and for dealing with housing and council tax benefit claims quickly.
Steven Shuttleworth, managing inspector for the southern region, said: "Many people in Mid Sussex are served well by the revenues and benefits service. However, there are some weaknesses in terms of user focus and helping people who are most in need."
Peter Jones, Cabinet member for resources, said: "This is a very good result for us, particularly since the inspection followed a difficult year for us.
"We are therefore proud to be awarded two stars but will be striving to improve on that."
Inspectors also looked at development and building control services, which process planning applications and monitor building work.
They described the services as good but with "uncertain prospects of improvement".
The full reports are available on www.auditcommission.gov.uk
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