Education policy rifts revealed

Grammar schools are back on the agenda - at least as far as the Downing Street policy unit is concerned. Gillian Shephard, the Secretary of State for Education, almost certainly takes a different view. She said soon after her appointment that she was more interested in the creation of new specialist schools than in more grammar schools.

The news that Norman Blackwell, head of the policy unit, is considering a proposal to allow parents and businessmen to set up grammar schools using private finance is the latest indication of the divisions between Mrs Shephard and the unit.

Mr Blackwell's proposal is part of his strategy to put clear blue water between the Conservatives and Labour. Labour is adamantly opposed to the creation of more grammar schools.

Mr Blackwell, a former management consultant with the United States company McKinsey, was appointed 15 months ago to restore the Government's fortunes. He has won the approval of Thatcherite right-wingers for his free- market views and his radical stand on education and welfare.

Mrs Shephard, by contrast, is married to a teacher, has a background in local government and believes that building bridges between her party and the teaching professions is an important part of her job.

The grammar school proposal is an example of their different approach. Mrs Shephard is not against grammar schools and strongly supports the remaining 130 as part of the Government's "diversity and choice" package. But the introduction of more grammarschools is not, for her, a priority.

That does not mean the Blackwell plan will not find its way into the manifesto. Mrs Shephard, who once declared nursery vouchers "cumbersome and bureaucratic", was eventually forced by Downing Street to accept them and a pilot scheme begins next month.

There was similar disagreement over John Major's plan to double the assisted- places scheme. Mrs Shephard was persuaded to accept an expansion of the scheme which allows bright pupils from poor homes to attend private schools when Downing Street officials produced figures showing how little it would cost.

A number of the education proposals in Mr Major's Birmingham speech last September are said to have taken her department unawares.

She strongly resisted plans from the policy unit, outlined in the speech, to allow church schools to become grant maintained without a parental ballot. The plans were abandoned earlier this year after fierce opposition from the churches.

Mrs Shephard saw that Downing Street wanted to use the church school issue to accelerate opting out for all schools.

When Downing Street last summer began to examine compulsory opting out for all secondary schools, Mrs Shephard made it clear that she disagreed. Battle was joined in a cabinet committee which even contemplated the abolition of all local authorities. That time Mrs Shephard won. Opting-out for all was put on the backburner.