The proposals for a new "pro-competition, pro-choice and pro-parents" approach to children's services are contained in plans for the government's forthcoming schools white paper.
Draft ideas are currently under scrutiny by the ministerial advisory group on the role of the local authority in education and children's services, to allow councils to help shape the changes.
This group includes officials from the Association of Directors of Children's Services (ADCS), the Local Government Association (LGA) and the Society of Local Authority Chief Executives, among others.
Plans under consideration include a suggestion that councils could offer school improvement services "on a traded basis in the market".
Authorities could also be pitted against each other over achieving school improvement in exchange for funding. This would be based on American programmes, such as Race to the Top, which rewards US states with cash for improving local education.
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