Museums, libraries and leisure centres are not ensuring customers get the most for their money, according to a local government watchdog.

The Audit Commission awarded Brighton and Hove City Council's cultural services department two out of three stars, calling it "a good service that has promising prospects for improvement".

However, the department - which runs the Royal Pavilion, libraries, museums, leisure centres and two swimming pools, as well as being responsible for the arts and tourism - was criticised for its money and performance management.

Staff were "high-calibre, committed to seeking further improvement", and online museum information was "hugely successful", with a 400 per cent increase in use over 18 months.

But the department was not taking an "effective approach in delivering ... value for money" and had not set standards for the level of service residents should expect.

The report said the department had "no consistent approach to using cost and quality information to achieve value for money". It said: "The council is not clear if it is routinely achieving value for money in cultural services."

The department was praised for reducing the cost of tourist information inquiries from £7 to 6p per person through an online visitor brochure, and for taking part in a Private Finance Initiative to build the Jubilee Library.

But it was criticised for not having a system in place to check how the money it spent affected visitor satisfaction, leaving it unaware if it was making the best use of its money.

Another criticism was that not all residents had access to services.

The report said: "Communities, such as families on lower incomes, make limited use of some cultural activity.

"The council has yet to explore and tackle effectively any barriers to participation, such as opening hours, location of activities and affordability.

"Access for people with disabilities is improving but the visitor experience at some facilities is inadequate."

Cultural services director Tony Miller said: "They have identified some weaknesses and we are working to address these."

The report can be viewed at www.auditcommission.gov.uk or at www.brightonandhoveartscommission.org.uk