Speaking at the party's annual conference in Liverpool, shadow education secretary Angela Rayner said if it gains power it will tackle the problem of failing academy trusts, a situation she said results in schools being "stranded outside the system".
Currently, local authorities have no say in the management of academies or free schools.
"Imagine being in an organisation facing a crisis but with no leadership or direction," Rayner said.
"Yet that's what they've inflicted on an ever-increasing number of schools. So we'll allow academies to return to local authority control."
She added that Labour would seek to address the situation whereby councils are responsible for school places but do not have the power to create them.
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