Tory leader Michael Howard has challenged the prime minister over the battle to create city academies.

Tony Blair said there will be an expansion of the project despite a reported rift within the Cabinet over plans to establish 200 new academies.

Blair contrasted the government's policy, which will be announced next week, with the "elitist, divisive and reactionary" policy announced by the Conservatives on Tuesday.

And the prime minister insisted schools were being given "greater freedom" which was leading to higher performance.

And he went on to say that funding per pupil had risen by £800 since 1997.

But the Conservative leader pointed to the government's record on literacy and numeracy as an area where Britain is still lagging other countries.

And he questioned why freedom was only being extended "to the best schools".

"Why can't freedom be extended to the many and not the few?" asked Howard.

Blair said the Tories' approach would result in selection "where schools choose parents".

"We do indeed increase choice if we expand the number of good schools, that’s the purpose of investing in them, that’s the purpose of creating specialist schools and city academies," he said.