Inspections to find out whether councils are good value for money have been labelled a waste of taxpayers' cash.

West Sussex County Council was found to be performing well in the latest report issued by the independent Audit Commission.

But council leader Henry Smith estimated compliance with inspections had cost £350,000.

He described the inspection regime as "cumbersome and costly to operate" and said the money "could have been spent far better on delivering the services that matter to the residents of West Sussex".

The inspection system, known as Comprehensive Performance Assessment (CPA), was introduced by the Government in 2002.

Under the CPA, local authorities are tested across several areas, including services and schools, to see if they are giving taxpayers a good deal.

A spokesman for the Audit Commission defended the inspections and said the cost of compliance took up a tiny percentage of the council's overall budget.

He said: "We are reducing the overall burden of regulation by reducing the frequency of inspections. The last inspection we carried out in West Sussex before this one was of the highways maintenance service in 2002."

The commission's latest report on West Sussex, issued on Monday, found the council enjoyed good leadership and a clear vision of what it wanted to achieve.

It said it had a track record of success in many areas and local people were generally satisfied with the services they received.

Highlights included the council's strong commitment to community safety, below-average crime rates, reductions in antisocial behaviour, improvements in road safety, well-managed services for children and effective financial management.

But the report also found the council needed to improve community engagement, in particular its understanding of the needs of ethnic and other minorities.

The council is currently rated "excellent" overall by the Audit Commission.