Ofsted inspectors found that although there were no widespread or serious failures that leave children at risk of harm, the authority is not delivering good care for all looked-after children and young people.
The report is the fifth to be published under Ofsted's single inspection framework, which was introduced in November.
The authority's rating comes despite it being judged good in three areas - child protection work, experience and progress of care leavers, and leadership, management and governance.
However, it was given an overall "requires improvement" grade because performance on adoptions and elements of work with looked-after children were not deemed to meet the same standard.
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