The implementation of the Education Reform Act (DES 1988) saw fundamental changes in the structure of education in England; in the relationship between schools and local education authorities and in the establishment of the private sector as a competitor to local education authorities in delivering services. Further legislation introduced by both the then Conservative Government and after 1997 by a Labour Government saw these changes further embedded. This research seeks through a review of literature to find out why those legislative changes were implemented and by investigating four local education authorities review how those changes impacted on their performance. This is a qualitative study that gathered data through the use of semi-structured interviews to create four case studies. Against a background of successive governments seeing the use of the market place, competition and the private sector as a means of delivering their aim of improving public sector performance this research provides an insight into how four local authorities worked with the private sector following their Ofsted inspections.