INSPECTORS have criticised Oxford City Council for failing to offer taxpayers value for money.

In the Audit Commission report, due to be tabled on Tuesday, the public spending watchdog said costs were "significantly higher than similar councils elsewhere".

Councils across the country are ranked on services such as leisure, environmental health and car parking - with Oxford historically among the highest spenders in almost all areas.

Oxford traditionally levies one of the highest council tax charges - £235.64 for a band D property from April.

The annual report, to be discussed by the council audit and governance committee, is a measure of the council's performance up to the middle of 2007.

City council deputy leader David Rundle said deep-rooted problems could take years to solve.

He said: "This organisation has huge, deep-seated problems built up over decades and turning it around takes time. We've started that, but there's a long way to go. What the organisation needs is radical transformation."

He added that any solution would come from making efficiencies rather than raising council tax.

The authority, run by the Liberal Democrats, has agreed a four per cent rise in council tax.