07 January 2005
Education ministers will consider extending the use of private companies to rescue failing councils' education services after inspectors gave an upbeat report on a flagship scheme in the West Midlands.
Department for Education and Skills officials have told Public Finance that companies could be asked to provide education services at other failing councils following an impressive turnaround at the Metropolitan Borough of Walsall, revealed in an Ofsted report published on January 4.
Inspectors found that there had been 'good progress in a short time' since the private firm Serco took over management of Walsall's schools in 2001. Operating as Education Walsall, Serco helped the local education authority achieve a 'highly satisfactory' rating following an inspection in October 2004, compared with a 'very poor' rating in 2001.
A spokesman for the DfES said: 'The government has always recognised the value of a competitive market in education services and has consistently emphasised the value of such partnerships, including constraining local authorities to consider alternative suppliers through its Best Value policy.'
The Walsall verdict came as the CBI claimed that education reforms were being threatened by the government's failure to foster the market in private provision. The business lobby attacked the government for its 'inability to sustain the new education market'. Companies had expected LEA management to provide new business, but instead it has remained restricted to nine failing authorities.
A CBI report published on January 5 says private contractors will refuse government pleas to move into the reorganisation of children's services and secondary school refurbishment because of doubts over long-term commercial viability.
Sir Digby Jones, the body's director-general, said the reform programme was 'critically dependent' on private sector expertise, but this would be lost without significant market expansion. 'Business has to be more than just a white knight riding to the rescue when there's trouble,' he added.
PFjan2005
