The Conservatives have pointed to a new select committee report as proof that John Prescott's government department is "badly structured and inefficient".

Shadow local government secretary Caroline Spelman said the Office of the Deputy Prime Minister should now be "downsized".

Her comments came after a report from the Commons ODPM committee said the department lacks focus.

The MPs said that structural changed had led to an inconsistent focus on key projects.

They added that further changes were a cause for worry.

"We are concerned that this has led to inconsistent management and a lack of focus on projects," said the report.

Spelman said the committee's warning confirmed that John Prescott's Whitehall department was unwiedly and unfit for purpose.

"His department should be downsized to give powers back to local authorities," she said.

"Mr Prescott has presided over a 70 per cent increase in council taxes, while his department has faced a crisis in direction and focus - a classic example of Blair's government wasting taxpayers' money.

"Conservatives have pledged to reduce the role of the ODPM and to create a smaller department for local government.

"People will face a clear choice at the election - more waste and higher taxes under Mr Blair, or value for money and lower taxes with the Conservatives."