During his speech to delegates at the National Children and Adult Services Conference 2009, Balls said central government should only be involved with interventions in schools as a last resort.
He announced that pending the receipt of strategic plans from the councils he would be stopping the government's interventions in schools in Bradford and Hackney.
"I have been deeply impressed at how local government has taken up the role of school improvement," he said.
Announcing that the government is set to publish its delayed information, advice and guidance strategy on Monday, Balls said that in order for the strategy to work it needed to be delivered well at a local level.
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