Tories drop pledge to match education spending plans

The Conservatives dropped their pledge to match Labour's spending on education yesterday, declaring that more money was not the answer to the problems afflicting Britain's public services.

The change of emphasis by the Tories could allow them to offer limited tax cuts at the next general election, despite their pledges that improving public services was a greater priority than reducing taxes.

The move is seen as a victory for right-wingers, led by Michael Howard, the shadow Chancellor, over modernisers who hoped to match Labour's education budget in an attempt to broaden the Tories' appeal.

Iain Duncan Smith, the Tory leader, told a press conference: "Don't by any means assume automatically that their [Labour's] spending plans are the benchmark by which everybody else has to be judged."

At last year's election, the Tories promised to match Labour's spending on education and health. But yesterday, Mr Howard paved the way for a possible Tory commitment to cut spending. "We are not bound by our pledges at the last general election. We are engaged in a complete review of how we can deliver world-class public services."

In a pre-emptive strike, ahead of the Government's three-year spending blueprint to be published next week, the Tories highlighted research from other countries to back up their call for public services to be reformed before more money was pumped in. With a £40bn boost for the health budget over five years already announced, education is expected to be the main winner in next week's package.

The Tories argued there was no direct link between national spending on education and the results achieved by pupils. They pointed to a study of international primary and secondary education, by the Organisation for Economic Cooperation and Development, which showed no clear correlation between spending and results. The top two achieving countries in the study, Japan and Korea, each spent less than Britain on primary and secondary education in 1998 ­ 2.8 per cent of gross domestic product and 3.1 per cent respectively ­ compared with 3.4 per cent. In contrast, Denmark, which spent 4.9 per cent, scored well below Britain in results.

Downing Street, which announced that the spending review would be unveiled next Monday, said it would show that education was the Government's number one priority, with investment tied to reform. It would also include measures to tackle crime and boost productivity.

Paul Boateng, the Chief Treasury Secretary, said yesterday's decision by the Tories was further proof that the party was "more extreme than ever". He said: "They would embark on the failed policy of cuts and privatisation that the people of Britain have so decisively rejected."

But Mr Duncan Smith insisted that what mattered was not the level of spending but what outcomes it achieved. "What we are arguing for is reform and change first. The problem is that we have a Government that makes the same statement but delivers only the increased spending."