A GRANT of £1.73 million is to be awarded to Richmond upon Thames Council from the government over the next two years under the Local Public Service Agreement (PSA) scheme.

Richmond council - one of 15 who piloted the first generation of local PSAs - has earned the reward grant for improving performance across a range of services to levels above those previously planned.

These include reducing youth offending and vehicle crime and the council can spend their grant as they wish to further improve performance.

In total, the 15 councils will receive grants totalling more than £93 million.

Leader of the council and cabinet member for combating crime, Cllr Tony Arbour, said: "This is a reward for three years of hard work by both members and officers in improving the failing services which we inherited. I want to pay tribute to all those at the sharp end who deliver our enhanced performance. They can be rightly proud of all that they have achieved.

"The council is becoming increasingly efficient and competent. This is demonstrated by the facts that, despite our receipt of the lowest government grant in London and one of the lowest ratios of employees to population, we are delivering the largest investment in borough infrastructure for decades.

"Our schools, highways, social services, libraries and our other services are rapidly improving.

"Richmond upon Thames is well on course for meeting our target of being the safest, cleanest and greenest borough in London."

Local government minister Nick Raynsford said: "The Local PSAs provide councils with challenging targets to drive up performance.

"I am very pleased to be able to announce today the first reward grants under the scheme, of which Richmond upon Thames will receive more than £1.7 million.

"This highlights that Local PSAs are working as planned, helping councils to deliver even better results for their local communities in key areas such as education and crime reduction, working with local partners and government.

"With the reward grant announced today, Richmond upon Thames will be able to build on these achievements and provide even better services for their community."

Local PSAs were piloted in 2000-1 and the agreements ran for three years, to March 2004.

The first 15 councils to claim reward grant have achieved significant improvements in key service areas such a education, social services, crime reduction and transport.