Blair pledges to relax his grip on power

Tony Blair promises today to "free up" the public sector by "letting go of power" in a U-turn that will see the Government impose fewer solutions from Whitehall and devolve more decisions to local level.

In an article for the Labour journal Renewal, published in The Independent today, the Prime Minister admits: "The state cannot do everything. Indeed, the state can sometimes become part of the problem, by smothering the enthusiasm of citizens."

Mr Blair makes clear that he wants schools to opt out of parts of the national curriculum and "vary conditions of employment", a move that could eventually dismantle national pay bargaining for teachers. He also promises more rewards for front-line police officers.

The shift in Labour's thinking will form a central plank of the three-year public spending plan to be unveiled in July by the Chancellor, Gordon Brown. Cabinet ministers admit privately that a torrent of headline-grabbing initiatives from Whitehall, particularly on crime and health, have left some staff confused and demoralised.

Mr Blair also pledges to relax his iron grip on the Labour Party. "We need to be relaxed about debate. We need to make devolution work within the party." He calls on members to be more outward-looking and to put as much effort into working with their local communities as they do into winning elections.

The article forms part of a concerted drive by the Government to learn from past mistakes, including "micro-managing" public services from Whitehall and appearing to be more interested in spin than substance.