£4,900 promised for every pupil

In the Budget, most new spending went on the National Health Service. Schools, colleges and universities were promised a bigger boost in today's review, to back up Tony Blair's promise that education remains one of his top priorities.

Head teachers' leaders estimated that the total education budget needed to rise by £22billion over the next three years, to £75billion; from 5.3 per cent of gross domestic product to 7.5 per cent.

For unions, the priority was a reduction in workload. At present, four out of 10 new teachers leave the profession within three years. The Government has pledged to recruit 10,000 new teachers and 20,000 assistants by 2006. Head teachers' leaders believe twice as many of both are required, estimating the bill at £1.2 billion.

Unions are also demanding higher pay in expensive areas such as London and the South-East. Heads, however, say schools cannot meet existing wage bills. A recent survey suggested half of London's schools could face having to make some teachers redundant.

Further education staff are leaving in droves because they can earn more in schools. One in four colleges is said to be close to bankruptcy. The lecturers' union, NATFHE, is planning industrial action over a 2.3per cent pay offer. It said colleges need an extra £500 million over three years to close the pay gap with schools, and an extra £750 million to redress historic under-funding.

But universities said they need an extra £10billion over three years to move towards the Government's ambition to see half of the under-30s in higher education by 2010.

What they got

Schools, colleges and universities will get a massive £15 billion annual boost from the Chancellor by 2005/6. But the extra cash is to be linked directly to reform.

An average secondary school will see an increase of £50,000 from next April in the money received direct from Whitehall on top of the £115,000 it gets at present, giving heads £500,000 to spend over three years.

But the Chancellor stressed that there were "no blank cheques".

On top of this figure, for 1,400 of the worst-performing secondary schools there will be an additional £125,000 a year in incentive payments, giving heads almost £1million over three years, but linked to new performance targets. An average primary school will receive £50,000 a year, up by £10,000.

There will also be strings attached to a one per cent rise in the budget for further education. Colleges will have to commit themselves to "stretching" performance targets guaranteeing high standards.

The boost means spending on education will rise by more than six per cent a year over the next three years. By 2005/6, it is predicted to be 5.6 per cent of national income.

Capital investment in education will rise to £7billion by 2005/6, compared with £1billion when Labour took power.

The Chancellor also confirmed that the means-tested Educational Maintenance Allowance, piloted in 56 areas of England, is to be extended nationwide at a cost of £600 million. Students from less well-off families who stay on in education after 16 will be entitled to grants of up to £30 per week.

Mr Brown said spending per pupil had increased from £2,700 in 1997 to £3,500 last year and would go up to £4,900 by 2005/6.

"To demand reform when you deny resources is a betrayal of children," said the Chancellor.

Education Secretary Estelle Morris will outline reforms to deal with poorly-behaved pupils and to enhance choice for parents and pupils tomorrow.