The improvement panel at Birmingham City Council will take a six month break to allow the authority the chance to prove it has progressed.
Secretary of state John Crabtree said: 'We believe that the political and managerial leadership of the council should now be given the chance to work together and demonstrate the council's ability to deliver the change and improvement needed, without the current level of intervention. This is why the panel is recommending to the secretary of state that the panel should stand back for a period, and return in the autumn to undertake a further review of progress.'
The latest report from the panel found that while the pace of progress has picked up, the changes have not yet had the required impact, or become embedded at the authority.
The council has been under scrutiny since a damning report by Lord Kerslake, in December 2014, following the 'Trojan Horse' school scandal.
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