The School Standards Minister Stephen Byers said that although the report showed that there had been "real advances" in the local education authority there were still "many remaining areas of concern", particularly in the council's management and financial control.

The progress of the local authority is to be monitored by a further Ofsted inspection, which will take place by next Easter.

Stephen Byers promises further intervention if necessary

The Hackney Improvement Team was set up in September 1997 to review the running of Hackney's education services to ensure that the local authority met its statutory responsibilities to its schools.

As part of its programme of improvements, the so-called "hit squad" oversaw the appointment of a director of education, Elizabeth Reid, who filled a post that had been vacant for over a year. The chairman of the improvement team, Richard Painter, said that the director of education gave "much-needed leadership".

Until the council reaches a satisfactory level of service, Stephen Byers has maintained the threat of further interventions in Hackney.