Grassroots Liberal Democrats have backed draft manifesto plans but roundly rejected suggestions that the party should support a social insurance system to fund the NHS.

The decision came as the Lib Dem members overwhelmingly endorsed the party's draft plans for the next general election.

But an amendment, unopposed by the leadership, insisted that the health service should "remain free at the point of use and funded by taxation".

Delegates gave virtually unanimous backing to that change after criticism was made of suggestions put forward in the "Orange Book" that a system of national social insurance should be introduced to fund health care.

The decision will be seen as a marker from party members who are opposed to any Westminster-led attempt to move the party to the right.

David Laws, the party's Treasury spokesman, came under fire for floating the controversial change in a book which has been seen as making the case for a more free market agenda.

Moving the amendment, Donnachadh McCarthy warned that the party would only win by being liberal.

"We do not need to follow Labour to the right," he warned.

And Tony Dawson, who will fight the Oldham East and Saddleworth seat for the Lib Dems at the next election, said the amendment would prevent "woolly words" appearing in the manifesto.

There was also a warning from a former Lib Dem council leader, Sir David Williams, that it was "very important that we do have discipline in the pre-election period".

In an apparent swipe at the authors, he said: "Get out of your armchairs and fight in Hartlepool."

Frontbencher Lembit Opik said he "may not agree" with the ideas put forward in the book, but it was better to discuss them than gag party members.

Plans backed

Once the amendment had been passed, the "pre-manifesto" was given unanimous backing by the conference.

Activists gave their backing to plans which include a 50 per cent top rate of tax on incomes over £100,000.

Though expected, the decision will be welcomed by the party leadership.

Speaking on Monday, Charles Kennedy insisted the party was right to begin making the case for its policies now, ahead of a general election expected next May.

He warned that the ideas risked being drowned out during the sound and fury of the election campaign itself.

The document commits the party to policies such as scrapping tuition fees, introducing free personal care, putting more police on the streets and increasing state pensions.

Lib Dems insist it is a "fully costed and achievable programme for government".

The move came as the Bournemouth conference focused on domestic issues.

On education the party debated plans to expand access to early years centres for children aged under seven.

Choice

But more controversially, the party is backing away from policies backed by Labour and the Conservatives to expand choice in education.

The Lib Dems are putting the emphasis on quality local education.

"Real choice comes when every child is guaranteed a high-quality education, so that choice about which school to attend can be based on positive not negative factors," says the party.

The plans call for an Office for Fair for Schools to regulate admissions to all state-funded schools.

But there was backing for greater diversity among schools, with academies, specialist schools and others "provided that there is equality of access".

Education spokesman Phil Willis also announced details of a "pupil's guarantee" that primary school class sizes will be cut to 20 for infants and 25 for 8 to 10-year-olds.

There will also be increased investment in early years education, funded by scrapping Labour's child trust funds scheme.