Birmingham’s education department faces an uncertain future, Birmingham City Council bosses have admitted, as they grapple with shrinking budgets and an increasing number of academies and free schools.

By this summer more than half of secondary schools in Birmingham and almost a third of primary schools will be outside council control, taking huge swathes of the city’s education budget with them.

It means that council-run school support services, such as school meals, home to school transport, special needs support, management and governor support and the admissions service face competition from private sector suppliers for contracts.

The council hopes an overhaul of the education support services could slash at least £20 million from the overall £268 million budget.

And the creation of even more academies and free schools over the next few years could mean an ever-decreasing role for the UK’s largest Local Education Authority.

But Labour council leader Sir Albert Bore and his education chief Brigid Jones said that they were not prepared to give up on education and let the schools go it alone – not least because it is the council’s ‘moral duty’ to ensure that every child is well catered for.

Coun Jones, cabinet member for children, young people and families, said: “There’s a moral and economic case for staying involved. We provide the civic leadership space and the links between education, employers and the other aspects of a young person’s life.

“We are not going to stop having a role in schools.”

Sir Albert added that although schools were increasingly independent, the council remained legally responsible for school improvement. The council also has a duty to ensure every child has a school place.

“As our money is stopped and passed to schools we will have less ability to provide services at the existing level – that is why we have launched this service review.

“But crucially we will still be held to account for school improvement.”

He added that in some areas schools of all types are already backing council services – particularly the admissions and appeals service which has 100 per cent take up.

Other services will be put into a wholly owned company and allowed to market themselves to head teachers, governing bodies and school sponsors.

And some could go or face cutbacks if they are no longer popular among schools.

Sir Albert warned that if schools wished to continue to receive services previously provided under the LEA umbrella, they would have to pay for them.

The council is also establishing a ‘Birmingham family of schools’, a new partnership involving the Council, schools and outside organisations such as the Universities – two of which have announced plans to run their own secondary schools – and businesses.

The Birmingham Education Partnership will be a cooperative trust, fully functioning by September, to develop education in the city.

Proposals are outlined in a green paper to be consulted on over the summer months by schools, teachers, governing bodies, parents and the wider city before final proposals are put into next year’s council budget.