The new inspections regime, known as the Comprehensive Area Assessment, will launch in April 2009 and will replace the existing Joint Area Reviews and annual performance assessments of children's services.
The paper, which aims to devolve more power to local authorities and their communities, also proposes a new requirement on statutory organisations to co-operate on relevant targets in local area agreements, including youth offending teams, the Learning and Skills Council for England and primary care trusts.
The white paper aims to strengthen local authorities' commissioning role and encourage more engagement between local government and the private and third sectors. It states: "This will complement the requirements of the Childcare Act 2006 and the education and inspections bill 2006 for authorities to consider the full range of alternative provision available when commissioning childcare and positive activities for young people."
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