North Lincolnshire council has narrowly escaped government intervention following another damning inspection report.
The Audit Commission gave the council's housing service no stars out of a possible three and rated it poor with uncertain prospects for improvement – a deterioration since almost two years ago, when the service was judged likely to improve.

In the wake of the report, a panel of audit commissioners considered whether or not to refer the council to the government under the Local Government Act 1999, which provides central government with powers for direct intervention.

However, the commissioners were persuaded to carry on with a programme of continuing inspection after North Lincolnshire drew up extensive plans for the improvement of its housing services.

Nick Atkin, lead housing inspector at the Audit Commission, said: "North Lincolnshire has clearly shown that it is genuinely committed to turning this service around.

"However, a step change is needed, and some doubts remain as to whether this will be delivered."

Other inspection reports released this week included one star for Lincoln council's housing services, rated fair with promising prospects for improvement; and a satisfactory rating for Tees Valley Housing Group.

Dorset-based Magna Housing Association was judged to have considerable scope for improvement.