Labour's manifesto will include proposals to give parents more control over their children's education, the Times reports.

The party will give parents the "ultimate sanction" of ousting the management of failing state schools.

Tony Blair believes the radical nature of such third-term reforms will show that Labour's desire to govern and ambitions remain undimmed.

The manifesto is said to have been agreed with Gordon Brown in trouble-free negotiations over recent days.

However, the FT reports that the chancellor has refused to be tied down to long-term commitments on tax and expenditure, despite the prime minister's belief that public spending is near its limit.

The Independent says Brown has been forced on to the defensive over his refusal to rule out raising national insurance contributions.

The publication of Labour's manifesto next week will be followed by the distribution of a condensed "minifesto" version to millions of homes.

Other policies will include further use of the private sector in the NHS, as well as giving communities more power to take over local authority services and hold police forces to account.