A news business is being set up to run school support services in Croydon.
The private company will offer a number of services, including school improvement, educational psychology, literacy and employment training and selected welfare services.
Croydon Council say the new company would operate and trade independently from the council, although it would still be a shareholder in the company and it would monitor the quality of service provided.
Schools, members of staff and private investors could also be shareholders.
The council believe the new business model, which has already been rolled out in other boroughs, is beneficial as many schools, such as academies, are now becoming independent from the council.
One of the benefits highlights is the council could work with schools outside of Croydon which would bring money in to the council.
The council are also expecting to save up to £1m per year as a result of the new company being set up.
Councillor Tim Pollard, cabinet member for children, families and learning, said: “Councils across the UK are gradually moving towards this type of approach to providing both statutory and non-statutory services.
“It’s becoming a well-tested formula and we’re confident that this is the right decision in the best interests of schools and local taxpayers.”
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