Sacked: the chief who failed Baby P

Sharon Shoesmith was stripped of her £100,000-a-year post after a "devastating" report found she had failed in her statutory duty to protect children.

The council's Labour leader George Meehan and cabinet member for children Liz Santry both quit.

Ms Shoesmith was removed from her post as Haringey council children's director when Mr Balls used legal powers to intervene directly.

He acted swiftly after he received a new inspectors' report into Haringey's handling of the Baby P case and its wider failures to serve children and parents. The 17-month-old boy died in his cot at his north London home last year after suffering abuse and neglect at the hands of his mother and two men. Today's report, by Ofsted, the Healthcare Commission and Inspectorate of Constabulary, found a catalogue of failings from front-line to management.

It also found that hospitals, police and even inspectors themselves had all failed to review properly the death of Baby P.

Mr Balls refused to grant a new public inquiry into the case, claiming that he wanted "to act now" rather than wait for a lengthy new investigation.

But the minister did announce that every council would now have to learn the lessons of the tragedy and all NHS trusts will be asked to review their child protection policies.

Under rarely-used powers, Mr Balls directed the council to remove Ms Shoesmith and install Hampshire county council's director of children's services, John Coughlan, in her place.

Mr Coughlan was seconded to Haringey last month to oversee children's services in the wake of the Baby P trial.

A new chair of the council's safeguarding board, which was meant to scrutinise its staff, was also appointed. Graham Badman will start work next week on a brand new "serious case review" of the toddler's case.

Mr Balls stressed that one of the most worrying findings of the report was that children were still being put at risk in Haringey.

He said that the council failed to allow children suspected of being abused to give evidence on their own in private. It was crucial that younsgters were "properly heard and able to speak up without fear", he said.

The minister said that social workers were often "unsung heroes", but stressed: "They must also be accountable for the decisions and when things go badly wrong people want to know why and what can be done about it."

Ms Shoesmith came under fire last month when she initially refused to apologise for the death of the child.

There were fears that Ms Shoesmith, 55, was set to walk away with a six-figure severance package including a pay-off and a "gold-plated" pension deal.

But Mr Balls said he would be "astonished" if she received any compensation for losing her job.

Ofsted have been asked to review the progress made by Haringey and to report to Mr Balls again next June.

Liberal Democrat MP for Hornsey and Wood Green, Lynne Featherstone, said: "The thing that gets me is I can not understand why we have to wait until June until the council is effectively put into special measures.

"We don't need more reports. That department needs looking after now."

Council Robert Gorrie, leader of the Lib-Dem opposition in the borough, said: "The report is absolutely devastating."