Agree that this move is probably intended to make us more compliant (and ultimately more competitive) with current continental systems.
I live in a country where all year six pupils have to sit an obligatory state exam in order to progress on to secondary school. The exam largely tests literary and numeracy (plus a combined subject including some basic geography, biology, science and history). If they fail, pupils have to stay behind a year in primary school or go to a 'special' school where all the other dc have failed too. It's harsh. But the exam itself isn't terrifically hard (although it is being said that standards are being raised this year).
The system works in that a much greater proportion of pupils end up at the same (relatively high) level of education, and these results follow through until the end of tertiary education and beyond ie there is much less of a gap between rich and poor here than in the UK and more social cohesion.
The downside is that for the few who are not academically able, they are obliged to remain in "secondary" school or at special colleges until their early or mid-20s; with the attendant loss of self-esteem. They do eventually end up with the basic skills however.
Totally agree with the poster who said that eleven year olds should not be labelled as "failures" however.