Former basket case council North East Lincolnshire has improved – but not enough, according to the Audit Commission. The latest corporate assessment claims the council is ‘performing adequately', but faces ‘significant challenges in delivering improvement'. In 2002, the council was rated ‘poor' in the Comprehensive Performance Assessments. It was in the middle of a cash crisis, had failing services, and faced government intervention of its education services. While services have improved, and the council is now financially sound, the commission says it has come from a ‘low base' but is not doing well, compared with others. The commission the council was failing to make enough impact on local quality of life. The council's chief executive, George Krawiec said: ‘An action plan has already been drawn up to address key issues – and our customers can expect to see improvements.' The authority was also described as ‘adequate' and ‘improving well' in its joint area review.