Council split over its child services
Private contractor Serco has been running Stoke-on-Trent City Council's children's services since the Government imposed an intervention order on the failing department in May 2007.
The company, which employs children's services director Ged Rowney and four deputy directors, was given a £5.2 million contract for three years.
Earlier this year the firm ruled out a temporary 12-month extension, but has hinted that it would seek a new, longer arrangement from next year.
Now Stoke-on-Trent City Council has revealed that it is looking to continue the private management of its education and children's care services in the city from next March.
The announcement comes as Minister of State for children, young people and families, Dawn Primarolo, says she is happy to lift the intervention order, which had been imposed following damning reports on the council's arrangements to safeguard children in care.
In a letter to council leader Ross Irving, the minister said: "I welcome the clear evidence that performance has improved across children's services and am grateful to Ged Rowney and his team for their good work.
"As a result of the clear improvements evidenced, and subject to robust succession plans being agreed by the council, I am not minded to issue a further direction."
The minister's comments pave the way for the council to either take back control of children's services from March, or tender for another private management contract.
The council has said its preferred option is to sign a contract with an external supplier, rather than moving the department back in-house.
Such a contract would initially last for three years, with an option to extend it for another two.
Interim chief executive Chris Harman said: "It is important to ensure a seamless transition to new management arrangements for this service.
"It is good news that intervention is to end, but this is subject to developing a robust succession plan."
Mr Irving also welcomed the minister's reluctance to extend the intervention order.
He said: "We are pleased with the minister's comments.
"We want to ensure our children and young people have the best possible services."
But cabinet member for children and young people's services, Councillor Ian Mitchell, said he did not feel that a new private management contract should be the preferred option.
He said: "Some people in the council may prefer that option, but it is not necessarily what everyone wants.
"The final decision on this will have to go to the cabinet before September so that we can begin work on the future arrangements in time for March."
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