Schools Secretary Ed Balls has signalled his intention to allow Bradford Council to once again run its own Education services.

At a conference yesterday, Mr Balls said he was “minded” to end the Government’s intervention when a private contract expires in 2011 due to the improvements. The Council was prevented from running its schools after a highly-critical Ofsted report in 2000.

Serco, trading as Education Bradford, signed a ten-year £360 million deal to provide education support services to the Council, which expires at the end of July, 2011.

Mr Balls said he had agreed the Council could now submit succession plans to drive forward improvements in education.

At the National Children and Adult Services conference in Harrogate, he said: “I don’t want there to be formal intervention in any local authority for any longer than is absolutely necessary.

“Where we do step in, I don’t want us to be involved for any longer than we need to be. That’s why I’m pleased that, following the improvement in Bradford, I am minded to end our involvement there.”

Council leader Councillor Kris Hopkins has spoken previously about his desire to bring education back in-house.

Yesterday he said: “We have been co-operating very closely – on an all-party basis – with Mr Balls over the last 12 months in preparation for the end of the Education Bradford contract.

“We are very clear on what is expected of the Council over the next few months and we are working very hard to satisfy the Secretary of State’s requirements for lifting the direction of our education services.”

The Labour group’s education spokesman, Councillor Ralph Berry, said: “The contract has been inhibiting and this is good news for Bradford. It means we can start planning with greater clarity and create a new form of partnership with schools.

“We still have a huge mountain to climb, but let’s get that done locally.”

Councillor David Ward, the Liberal Democrat group’s education spokesman, said: “We always regarded it as a tragedy that the state of education through the ’90s was allowed to deteriorate to the level that the Government needed to step in.”

Denise Faulconbridge, Education Bradford’s managing director, said: “A decision to lift the direction is a key milestone as it recognises the impact of our partnership work with schools and the Council. Together we have secured significant progress.”

Residents are now being consulted on the future of education in the district and are being asked for their views on how services can be improved.

People have until the end of November to have their say and their suggestions will be taken into consideration when the Council’s Programme Board for the Review of Education Services produces a report on how education services can best be managed.

e-mail: jo.winrow @telegraphandargus.co.uk