The joint report by Ofsted and the now defunct Social Services Inspectorate into the council's children, families and schools department found that merging with education had improved social care in the city.
Inspectors were impressed by the quality of the department's vision and strategic planning, and praised its commitment to working with partner agencies to provide integrated services.
Pat Hawkes, lead councillor for the department, said: "Merging education and children's social care services two years ago was a bold and innovative move."
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