The prime minister has pledged to help headteachers by setting school budgets for three years.

Speaking at the National Association of Head Teachers' conference in Cardiff on Sunday, Tony Blair insisted that education would remain his government's top priority.

Following last year's rows over school budgets, moves to a three-year funding agreement will be announced in July, Blair said.

And he also indicated that the offer of a free nursery school place for every two-year-old is likely to be a key manifesto pledge.

The government aims to create a "nationwide universal early years service for under fives", said the prime minister.