The system is based on 46 criteria which each receive a grade between one for the best and seven for the worst. These then combine into a single overall rating between one and seven.
It has been applied to all councils so far inspected, but only results for Kensington & Chelsea LBC, the Corporation of London and Warwickshire CC have been released. Ofsted said these are the only three councils in the country to attain grade one.
Members will come under closer scrutiny than before as they have their own criterion, defined as 'the quality of leadership given by elected members'.
She was unable to confirm whether the single overall grade would be broken down into the 46 criteria for councils, or if this would be put into the public domain.