environment and health services provided at an annual cost of £5 million by Test Valley Borough Council have failed to get top marks partly because kitchen and garden waste have been sent to landfill for the past 18 months.

Overall the services are described as 'good' and have won two stars out of a possible three, but they have uncertain prospects for improvement, according to an independent report from the Audit Commission.

Bridget Downton, managing Inspector for the commission's southern region, said: "Residents assumed their separated green waste was being composted by the council.

"In fact, it was used as landfill and only very recently, as a result of our inspection, has the council taken action to tell local people about these problems."

Leader of the borough council, councillor Ian Carr, said: "Our review of the environment and health service has already identified areas for improvement and we are disappointed that the Inspectors have not recognised the council's commitment to developing the services we provide.

"However, our main concern is the views of the people who live in Test Valley and we will continue to do our best to provide the services they want at costs that they believe offer good value."

A number of strengths were identified.

"All residents have access to kerbside collection of recyclables and green waste and other neighbourhood recycling facilities close to home," added Bridget Downton. "Programmes of inspection for food and health and safety are being completed on time and there is a high level of customer satisfaction"

However, inspectors also found a need to reduce the number of missed bins and improve cost-effectiveness.

The service is estimated to cost more than £5 million for 2002/03, which is 51 per cent of the overall council net budget.

It deals with 36,900 tons of general waste and 9,300 tons of recyclable materials.