The Audit Commission has rated Cumbria County Council's highways and transport services as "fair" and as having promising prospects for improvement.
The Commission report, published today (Thursday) lists some of the county council’s strengths including improved road condition and good community travels schemes in rural areas and prompt responses to emergency situations.
Jack Richardson, cabinet spokesman for transport, said: "The Commission has recognised that we are making good progress and has pointed to areas where we are clear in our aims and where we are performing well.
"It is also good to see the Commission recognising that the rural nature of our county presents particular transport problems.
"But the Commission also points out where it judges that we have not performed well. These are areas where we already have plans in place to bring about the improvements we want and we are confident we are set to improve significantly in the future."
In areas where the Audit Commission says there is need for improvement, the county council is already taking action.
Substantial funding is earmarked the draft budget for work on the rights of way network.
Cumbria is already ahead of the national profile on progress towards meeting the 2010 target for reducing the number of people killed and seriously injured on the roads.
The council is already working with bus operators, and particularly with Stagecoach, the major operator in the county, to agree priority routes for joint investment in buses and infrastructure.
An action plan has already been agreed to improve the Highways Hotline to provide better feedback for the public.
An extra £1.5m has already been redirected to Barrow and Copeland to address specific street lighting issues and significant capital funding has been allocated to replaces ageing columns across the county.
An asset management approach to highways work in the county is set out in a draft plan which is now at the consolation stage.
A set of Cumbria Highways leaflets is being prepared to better explain service standards.