Prime Minister Tony Blair's Labour government published its Education Bill yesterday, setting the stage for a showdown with some of its own MPs over a key part of Mr Blair's domestic reform agenda.

As expected, the Bill includes provisions allowing all state-funded schools to opt out of local authority control and become self-governing 'Trusts'.

To meet concerns Trust schools might pick only the brightest children, the Bill bans schools from interviewing prospective pupils and requires them to adhere to guidelines on admissions.

The Bill backs down on earlier plans to bar the creation of new local authority controlled 'community' schools - the type which makes up the vast majority of schools in England.

Many Labour MPs are unhappy with the plans, fearing they will open the door to the old two-tier system of 'haves' and 'have-nots' which has been anathema to Labour for decades.

Teaching unions welcomed some specific points but believe the Bill as a whole will not achieve the government's aim of boosting education standards in England.

Education Secretary Ruth Kelly told BBC radio she was "very confident" Labour parliamentarians would unite around the Bill.

"Education is always going to produce passions in the Labour party and rightly so," she said.

Yesterday the Conservative Party said it would support the Bill - raising the unpleasant prospect for Mr Blair that he will only get his piece of flagship legislation through with the help of the main opposition against an expected Labour revolt .

"This Bill offers some new freedoms for schools. We believe we can raise the quality of education by giving schools more freedom, so we will back the Bill," Shadow Education Secretary David Willetts said.

Mr Blair saw his majority in parliament cut in half in an election last May and is more vulnerable to rebellions by members of his own party. He has lost votes on anti-terrorism and religious hatred bills in the last few months.

But he has said he does not want to rely on the opposition to pass his Education Bill, which will face its first hurdle in a House of Commons vote in mid-March.

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