Services for children and young people in Brighton and Hove have been rated "good" in a new report.

The city was praised by Government inspectors in the Joint Area Review but told there were still concerns about several issues, including the more than 400 youngsters not in education, employment or training.

Good is the second highest grade achievable, after Outstanding.

City councillor Pat Hawkes, chairwoman of the new Children And Young People's Trust board, said: "We're pleased the inspectors have taken such a positive view of the services provided in the city."

The inspectors visited Brighton and Hove during the summer and examined all aspects of services for children and young people.

In the report, published on Tuesday, they said most children achieved well at school and attainment was improving. They said children most at risk from abuse were well protected. Health services and the council were praised for working together to promote healthy living.

The report said teenage pregnancy rates were higher than the national average but were also falling faster than the national average. Figures listed by the Government's national statistics website show that in 2003 there were 192 pregnancies among under 18s in the city. The rate, of 47 per 1,000 women aged 15 to 17 becoming pregnant was five higher than the national average.

The report said vulnerable children and young people had access to good support services and there was a comprehensive anti-bullying strategy in place.

The inspectors said a good range of recreational activities was available. They said children with learning difficulties and disabilities received good services. They found a range of early years provision was available and good measures were in place to identify young people at risk of antisocial behaviour.

David Hawker, the council's director of children and young people's services, said he was pleased by the report but aware the city had to work hard to improve services.

He said: "We must make sure the right outcomes are produced for the children."

The inspectors took evidence from the city council and NHS among other agencies. They conducted an in-depth study of services focusing on the Moulsecoomb area and spoke to parents and young people about the services they received.

They said they wanted to reduce the number of children looked after by the council and improve the range of foster care placements available; reduce the proportion of young people not in education, employment or training; and improve employment and training opportunities for youngsters with learning difficulties.

Coun Hawkes said the young people's trust was already working to address these issues. He said measures were in place to tackle those youngsters not in education employment or training.