Four out of five local government services are now available online, according to a report from the Office of the Deputy Prime Minister.

Based on the Implementing Electronic Government statements published earlier this year, the second annual report on the National Strategy for Local e-Government found the average council is now 79% e-enabled compared with 59% a year ago.

Meanwhile, more than three quarters of all 'required' and 'good' priority outcomes set by central government are now being implemented.

In more than 100 councils citizens can already go online to submit planning applications, check their council tax balance and calculate their benefits, the ODPM said.

The National Projects programme, set up by the government to create useful e-government software products and disseminate best practice, is also bearing fruit.

More than 250 products have been produced for local authorities under the programme, the ODPM said.

In 2005-2006 councils in Englandwill each receive a further £150,000 in capital grant to help them to deliver local e-government.

In the final year of the programme, the focus will be realising the full benefits of e-government by addressing issues of value for money, take up and organisational change.

Local e-Government Minister Phil Hope said, "Our second year report documents the tremendous progress that has been made by councils to date, under the sponsorship of the National Strategy for local e-government.

"If local e-government is to make a genuine and sustainable contribution to the improvement of public services, then the next twelve months must see us driving through the benefits of our investment to make a real difference to the lives of ordinary people."