On Friday, the government announced proposals that would allow all schools to have total control of their budgets, bypassing local education authorities - rather like the funding of grant-maintained schools, which Labour opposes.

But Mr Blunkett insisted the proposals were not a major change of heart. They were an attempt to end to the differences, divisions and conflict that existed before, he said.

Blunkett: "plans not a change of heart"

"It is a total misconception that the announcement replicates the grant-maintained sector. It does not replicate unfair funding, it does not replicate opting out of the planning process for places or lack of accountability.

"We are saying - here is 100% of what needs to be spent in the schools, if you want the local authority to do it instead, you can agree to do that.

"It is not a change of heart, we have said in all the documents from 1985 onwards that schools would control schools and local authorities would not control schools."

Giving schools the chance to control their own budgets was not a completion of the Tories' grant-maintained revolution, he said. Instead of having to opt out of council control - as more than 1,000 schools did before the General Election - all schools will now automatically have the right to manage their day-to-day budgets, receiving a cheque book and the right to earn interest.

Response to heads

Speaking on BBC Radio 4's The World This Weekend, Mr Blunkett responded to head teachers threatening a nationwide revolt over tough targets for the three Rs at primary school level.

It was clear that not just the worst targets needed to be lifted but a very large number in the middle, if Britain wanted to succeed, he stressed. The National Association of Head Teachers has been telling members to "just say no" to goals set by local authorities as their contribution towards national targets.

The government announced the targets requiring that by 2002 80% of 11-year-old children should achieve the expected level in English and 75% in maths at their annual conference in Eastbourne, East Sussex on Thursday.

Mr Blunkett said all targets should build on the previous best school result - whether on a primary or secondary level. "Any education authority which sets below that level is not doing their job properly. We have to motivate from within the school."