Barnet's education service faces wholesale privatisation if critical problems are not addressed immediately.

An internal review by Barnet Council has revealed the borough's Local Education Authority does not meet new Ofsted standards with outstanding essential repair work on crumbling school buildings alone estimated to cost £256million over the next ten years.

If the situation does not improve, private consultants could be drafted in or the powers of the LEA taken over by a private firm, as happened in Islington in April 2000.

Conservative education spokeswoman Vanessa Gearson will tell the cabinet on Monday that the council must take immediate action to avoid school closures like those at Ashmole School in Cecil Road, Southgate, where children were sent home nine times in 18 months because of disrepair.

Tories already plan to draft in expertise from the private agency Capita to take over the duties of departing chief education officer Lyndsey Stone, including special needs provision.

They also want private investors to inject £120m to replace 21 primary schools and four special schools over the next four years.

Ms Gearson's report said: "We currently do not have the capacity to deliver a vision for the education service, or to approach the standard set out by the Audit Commission or Ofsted.

"The council must take action or risk increasing problems with school closure as a result of health and safety fears.

"We are currently not able to offer an effective choice to parents, particularly for many children with special educational needs (SEN)."

She also said that the borough sends too many SEN pupils placed out of borough in both mainstream and special schools.

But the Labour Party fears private investment would be gambling with taxpayers' money.

A spokesman said: "Nobody would oppose £120m for school buildings but it is a huge gamble. It is very expensive to set up a partnership and even then the Government may not agree it."