Significant increases in council tax this year have done little to improve services in local authorities, according to the Audit Commission.

It said that there was no statistical link between improvements in performance and increases levied.

However, the watchdog's league tables found that standards have improved across the board since the system was introduced last year.

There are now 26 councils out of 150 in England and Wales rated as excellent - four more than in 2002. The number considered good is up two to 56 and 40 are rated as fair representing no change.

The biggest councils have fared best in the improvements in standards, the report found.