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Caerphilly Council has been given a clean bill of health by an independent panel.

Chief executive Richard Edmunds told the council’s audit committee the panel had spent four days inspecting the local authority, “lifting the bonnet” to assess “whether we are meeting our performance requirements”.

Under Welsh law, councils must be assessed once every electoral cycle.

The panel found Caerphilly Council is “effectively fulfilling its functions, despite the challenging environment facing local government across Wales and the UK – marked by rising demand and significant funding gaps”.

The local authority’s leadership has a “clear grasp of the scale of these challenges”, the panel concluded, adding a “substantial” project aimed at cutting costs and modernising services was “ambitious”.

Mr Edmunds said officers were “very pleased” with the report while also noting the panel had provided “a number of helpful suggestions for continuing to improve the way we operate and the way we are governed”.

The council has now drawn up a special action plan in response to the panel’s recommendations, the committee heard.

Cllr Gary Enright noted the panel’s comments that “financial discipline has improved under the newly appointed Section 151 officer”.

He questioned whether there was an “inference that there were concerns prior”.

“There were no concerns shared previously, but what the panel did pick up on was the enhanced monitoring and evaluation that has been brought in to bear in recent months,” replied the chief executive. “This is about strengthening an already reasonably positive position, rather than suggesting what has gone before was anything short of that.”

Committee member Jo Williams asked how the council’s response would be monitored, and suggested the plan should have included specific actions.

Mr Edmunds said the council would provide quarterly progress reports to the committee.

Outside of the meeting, council leader Cllr Jamie Pritchard welcomed the panel’s “pretty positive” findings, including their comments that he showed “strong, effective leadership”, and “genuine dedication and unwavering support” for the transformation programme.

However, he said the council would work to improve dialogue across the council chamber after the panel said some elected members feel “unheard”.

“It’s always nice to be recognised for effective leadership by an independent panel, and whilst this is personally pleasing, I do accept more needs to be done to work with all councillors and members of the public,” he said.

The leader said he has “an open-door policy” for all councillors and had “stepped up the engagement with residents”, adding: “The view from the panel of the council is pretty positive, but there is always room for improvement, and we will work on delivering those improvements”.