City bosses have rejected a proposal to allow social work staff and managers to run Birmingham’s troubled children’s services department.

But they have confirmed that social workers will be able to sit on the board of a new wholly-owned company being created to run the new Birmingham Children’s Trust.

A cabinet report confirms that there will be a staff presence at the top table.

It is the latest stage in the process, started last year, to create a Trust to run the under-performing child protection service after years of failure.

The wholly-owned company has been selected in preference to a staff-run mutual organisation.

Labour cabinet member for children, families and schools, councillor Brigid Jones said: “We want all our children to have a fantastic childhood, and every option has been considered as to how to shape our social work in the future to deliver just that. It has been recommended that on balance a wholly-owned company is the best model for our Trust because it provides more flexibility and a low risk.

Newly appointed chairman of Birmingham Children's Trust Andrew Christie with council cabinet member for Children's Services Brigid Jones

“There will be far less potential for disruption to our ongoing improvement than with other options. It is also recommended that it is created as a community interest company, which is really important as it makes clear that the Trust exists to deliver real and tangible benefits to the community it serves, and not for private gain. The Trust will have its own board and management team to ensure operational independence and a single focus on children’s care, and we will look to build in strong staff engagement including a role in governance arrangements.”

A shadow board will start operating from April, ahead of taking full control later in the year.

“There is a long way still to go, but this is a really important step for us,” said councillor Jones. “Ultimately, it is about creating conditions that allow our best social workers, with our partners, children and families, to do great work.”

The Trust is being set up to allow the department to focus entirely on child protection without the baggage and distractions of being part of the larger Birmingham City Council machine.

The department, whose failings have been exposed in a series of Birmingham Mail exclusive reports, has been officially rated as inadequate since 2009, and is now two years into a three-year improvement and investment plan designed to lift it out of special measures.