For the third year running, Hampshire County Council has been rated "excellent" in the way it serves residents.

The annual assessment, carried out by the Audit Commission, examines the way councils are run and the performance of its main services.

Hampshire County Council scored four out of four in both sections of the assessment, keeping it in the top 25% of authorities in the country for excellence.

The Comprehensive Performance Assessment was first introduced in 2002 and measures the performance of all councils across the UK.

The Audit Commission praised Hampshire County Council for "identifying what it wants to achieve, including challenging targets and ambitions".

Based on Hampshire's current plans, the council is well placed to further improve the way it works and the services it provides."

Ken Thornber, leader of Hampshire County Council, said: "We have maintained high standards to keep our 'excellent' rating and we shall continue our efforts to improve even further.

"This assessment is great news for the county and for the authority and I am delighted that the hard work that goes on behind the scenes has been acknowledged.

"We are constantly striving to improve services and one of the ways we are able to do this is by working effectively with partners.

"Such partnerships have resulted in improvements across the county, from more nursing care places for elderly residents to a recycling record which is among the best in the UK.

"The assessment recognises our work towards achieving the goals we have set for children's services and the establishment of the children's and adolescent mental health trust.

"Our achievements in education remain high and the commission has acknowledged our work in improving standards within targeted schools in deprived areas and tackling unauthorised absences and exclusions.

"Being rated 'excellent' three years in a row does not mean we will become complacent. We will continue to work hard and in innovative ways to ensure high-quality services so that everyone in the community has the best possible opportunities and that Hampshire remains a place where people want to live. I also congratulate our staff who have delivered this result."

The county council's financial planning has also come out well in a separate report from the Audit Commission, scoring four out of four.

The report said Hampshire County Council had "sound arrangements" to address financial issues.

"Work to integrate service and financial planning is continuing and there is commitment to delivering this during 2005-6.

"This is a difficult area for many authorities and the council's commitment to achieving this is commended."

Hampshire's education department has maintained its top three-star rating and Social Services received two stars in the recently-released ratings from the Government.