Doncaster MBC will be allowed to set up its own children's trust, the Government has ruled, in a victory which will have implications across the whole of local government.

Education secretary Michael Gove has granted the council the chance to go its own way, despite the recommendations of an independent report by Julian Le Grand.

The Le Grand report, published in July, called for an independent, not-for-profit trust to take over children's services at the local authority, removing it completely from the council.

Following its publication, the authority called on Mr Gove to rethink the plans. In a counter-offer, proposed by the authority, it recommended the council could appoint an independent trust itself.

Doncaster's directly elected mayor, Ros Jones' alternative course also suggests the council and its commissioners should jointly appoint a director of children's services – who would serve as the chief executive of the trust.

Now Mr Gove has written to Mayor Jones today, saying: ‘I am now content to agree in principle to the establishment of the Doncaster Children's Trust, without the requirement to remove Doncaster's children's services functions entirely.'

However, Mr Gove has warned: ‘lt should be clear to you that I of course retain the power to remove children's services functions from Doncaster in future if it proves necessary to secure swifter improvement.'

The trust, will be set up for a period of ten years, with a review after five years.