An official study which branded Birmingham children’s services as inadequate must act as a wake-up call to the city council, the Local Government Minister said yesterday.

John Healey said council leaders had to “pull their socks up” following the Audit Commission’s Comprehensive Performance Assessment, which criticised poor standards of protection for youngsters at risk of sexual and physical abuse. The finding led to the council losing its coveted three-star rating as one of the country’s better-run local authorities.

Mr Healey was confident that Birmingham would bounce back from two-star status, which denotes performance only at minimum requirements.

But he warned that any council, having been told to improve, that saw a further decline in standards could expect direct action from the government.

A team of civil servants is working with the city council in an attempt to improve care standards, and ministers have warned Birmingham in the past that control of children’s social services could be passed directly to Whitehall.

Mr Healey rejected claims by some councils that the Audit Commission and education watchdog Ofsted had been too hard on children’s services following the death last year of Baby P in Haringey. He said: “I have no time for those who say the Audit Commission has been too tough on councils, especially where children are concerned. We expect the highest standards when it comes to protecting the most vulnerable children”

Neither could he accept the suggestion that high levels of deprivation in Birmingham made the care of vulnerable children far more difficult. The city council constantly has problems recruiting social workers; up to 20 per cent of posts are vacant at any one time.

Mr Healey said: “There are big challenges in all of our big cities. But poor areas are never an excuse for having poor public services. There is a reason to work harder to make sure that services are as good as anywhere else in the country. I would expect that of Birmingham and I am confident that the city council will respond strongly to the Audit Commission’s assessment.”

He challenged West Midlands councils to improve in the recession. It was more important in times of economic hardship to have excellent public services and low council tax increases. He said: “I have great faith in local government generally, whichever party is in control. I am confident that councils marked down this year will see it as a warning shot and will work to make sure they meet the standard of services that people deserve and expect.”