Cash for council services in York goes further pound-for-pound than in any other city in England, it was revealed today.

Figures published by the public spending watchdog indicate that the City of York Council manages to make its funds stretch further than other similar councils.

In its annual survey of how local authorities are performing, the Audit Commission found that the service York offered was average in quality - but the cheapest in price, compared with other cities in England.

In 1996/97, the year of the report, services in York cost £630 a year per citizen, compared with more than £1,000 in some London boroughs. In East Riding of Yorkshire, the figure was £713.

However, York fell down in its provision of library services, emerging joint fourth worst in the country in terms of the number of books and other items available for loan.

Its treatment of homeless people stood out in another part of the Audit Commission's report, which uses a series of "performance indicators" to assess local authorities.

It showed that York homeless people are put up in temporary bed-and-breakfast accommodaion, rather than something more permanent, for an average of 16 weeks at a time. This is well above the national average of 10 and the highest of any unitary authority.

Leisure chiefs claimed the library service had enjoyed heavy investment since the Audit Commission's survey was carried out in 1996/97.

Assistant director Paul Roper said: "Other authorities are closing libraries, reducing hours of opening and cutting the book fund. We are doing none of this and spend £350,000 a year on books and other items for loan."

The City of York Council explained the high figure for accommodating homeless people in bed-and-breakfasts by saying it had almost doubled its population in the local government reorganisation of 1996.

This gave it more homeless people but no extra hostels.

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