THE Audit Commission has praised Malvern Hills District Council for the work it has carried out to improve economic prosperity in the area.

But despite getting two stars out of a potential three in a report released on Tuesday, the Audit Commission also expressed concern over the withdrawal of funding in key areas and a vision for the future that is "unclear" to partners.

MHDC said the 'Good Service' rating was "excellent news" and welcomed praise for its clear and challenging aims for economic prosperity, the current delivery of an effective service to business and developments in addressing the needs of the wider community.

The report highlights MHDC's role in the Malvern Hills Science Park and the external funding it has lobbied for including the Worcester/Birmingham Technology Corridor.

It lists the council's weaknesses as not fully evaluating the near quarter of its budget which is spent on economic prosperity, the impression it gives of being inconsistent in its commitment and its lower efforts to build relations with the wider community.

The independent report - a best value initiative which interviewed staff, members, business partners and the public - recommends more active involvement with partners, stakeholders and the community, the development of a ten year strategy for economic prosperity with them and the development of a tourism and marketing strategy by the end of this year.

MHDC economic development officer Sarah Gordon said the council was pleased with the positive comments and feedback that had come from external people involved in the inspection.

"We are quite proud of what we have achieved through recent difficult times," she said.

She also pointed to the imminent appointment of a new community development worker, who will work across the district to develop community relationships and identify and support small scale community projects.

That, she said, would help to address recommendations from the Audit Commission as part of a wider community strategy.

"Once we know what the key issues are we can start focusing on economic prosperity and the issues coming out of that."