The Audit Commission has pledged to halve the cost of its inspection work by next year.

James Strachan, the inspection body's chairman, said the reduction was part of the drive for "strategic regulation" aimed at improving public services by "concentrating our energies where the room for improvement is greatest".

Inspection in local government will now cost almost £26 million next year, compared to £49 million in 2001.

"By being more targeted and strategic we can concentrate our effort where there is most room for improvement," Strachan said.

"As a result, we can probably achieve more bang for less buck."