Up to £5.7 billion could be saved from the education budget, a Conservative Party review of Whitehall efficiency has found.

The biggest savings identified would come from a reduced role for local education authorities,with school funds coming directly from the Department for Education and Skills.

The arrangement would be managed by staff in Whitehall - although the department would see 2,700 posts axed under the party's plans.

The efficiency savings identified by the committee, led by "company doctor" David James, would free up £1.3 billion more than those planned by Labour.