The head of children's services and two councillors in the north London borough where Baby P died have been suspended on full pay yesterday following a "devastating" inspectors' report into the case.

Children's Secretary Ed Balls said he was taking immediate action to replace the management of Haringey Council children's services. "Overall, the inspectors' findings are, I have to say, devastating," he told a news conference. "Their report delivers a damning verdict on the current management of (children's) safeguarding in Haringey."

The inspectors said they had found a number of "serious concerns" about the safeguarding of children in the borough.

"The contribution of local services to improving outcomes for children and young people at risk or requiring safeguarding is inadequate and needs urgent and sustained attention," they said.

Mr Balls said he was greatly worried that the inspectors had found "little evidence" of management follow-up to ensure that children suspected of being abused were properly heard and able to speak up without fear. He said Sharon Shoesmith, head of children's services at Haringey Council, would be removed from her post with immediate effect.

Haringey Council leader George Meehan and Cabinet Member for Children and Young People Liz Santry both quit shortly before Mr Balls's announcement.

John Coughlan, head of Hampshire children's services, who had already been seconded to Haringey, will replace Ms Shoesmith, Mr Balls said.

He ordered a new "serious case review" into Baby P's death to be published by March after the inspectors found the one prepared by the authority was inadequate.

Separately, Health Secretary Alan Johnson ordered a national review to see if health organisation boards were applying child protection standards "as vigorously as they should be."

David Nicholson, the head of the National Health Service, will also write to all NHS bodies asking them to review their arrangements for child protection.

Schools inspectorate Ofsted, the Commission for Healthcare Audit and Inspection, and the Chief Inspector of Constabulary conducted the review and presented it to ministers earlier yesterday.

Baby P died after suffering more than 40 injuries during a campaign of abuse at his home, despite being on Haringey's "at risk" register and having had 60 visits from care workers.

It was the second serious child welfare tragedy in Haringey following the murder of eight-year-old Victoria Climbie by her guardians in 2000.

Baby P's 27-year-old mother, her 32-year-old boyfriend and lodger Jason Owen, 36, will be sentenced next year for causing or allowing the child's death.

Lord Laming, who led an inquiry into Ms Climbie's death, will deliver the findings of a nationwide review of child protection measures early next year.