The Lib Dems are to sell improved local public services funded by transparent taxation as their big idea.

Launching the new policy agenda on Wednesday, Charles Kennedy hailed his new mission to take the initiative on public services as "time to return power to local people".

Chris Huhne, the Liberal Democrat policy wonk and MEP, is the architect of the document billed as "the centrepiece of the autumn conference".

Headlined "Quality, innovation and choice" his proposals aim to replace Whitehall bureaucracy with devolution and mutualism.

In an effort to woo both Labour and Tory swing voters, Lib Dems are to back an earmarked NHS tax.

Party insiders hope that the bitter pill of health taxes can be sweetened for Conservatives by "transparently" hypothecating cash for the NHS.

Hailing Huhne's "fresh radical thinking", Kennedy argued the "Liberal Democrats have been the true champions of properly funded public services".

"This fresh, radical thinking by Chris Huhne and his working group, is a real contribution to the debate about the future of our public services," he said.

"Less should be done from Whitehall, more should be done locally by those who truly understand what's needed to deliver first class hospitals, schools and efficient public transport to every community.

"We need transparency in funding. We need to know the money is there for the NHS and we need to be sure it's being spent effectively."

Chris Huhne trails the Lib Dem policy as a means of both overcoming under-investment and restoring confidence in battered public services.

"Our proposals are designed to cope with problems that face all our public services, including the chronic under-investment that is now a hallmark of the British public sector unique in the European Union," he said.

"Our policies will put power back in the hands of the people who use these services and the professionals who run them. Let the people who know what needs to be done, do what needs to be done."

He believes that decentralisation could see the restoration of old welfare state benefits.

"We want to see the return of free eye tests, dental checks, free personal care for the elderly, and an end to the scandal of tuition fees that mean the poorest in our society are barred from higher education."

Addressing the Brighton conference in a debate eclipsed by Iraq, the Lib Dem Treasury spokesman Matthew Taylor praised the plans as "our case to take to the country".

"This is our case to take to the country. An earmarked, guaranteed NHS contribution so that healthcare has long term, guaranteed, transparent funding. And to transfer power form the hidden corridors of Whitehall to the individual and neighbourhood," he said.

Health

More focus on public health and prevention measures, including better high risk identification and early intervention.Boost patient choice by allowing access to any treatment that will help them and is cost-effective anywhere in the UK.

"Empower" patients by providing more information on health options and outcomes - for example a national internet database of waiting times and treatment options.

Personal Health Plans setting out individual entitlements and Personal Care Plans to guarantee support levels for social service users.

"Fair access" to services with a moratorium on charges and a pledge to scrap charges for eye and dental tests, as well as personal care.

Education

Detailed information for parents on the performance of both their child and the school through Annual Progress Reports (APRs).

APRs will set individual achievement targets for each child and form the basis of an Entitlement Guarantee.

Improved comparative data on school performance would be included in APRs but "crude government-sanctioned national league tables will be scrapped".

Individual Education Passports to use in schools or colleges or on other training from age 14.

A Dutch style funding system for higher and further education based on need.

Regional Learning and Skills Councils in England to develop and improve vocational education - eventually to accountable to devolved regional assemblies.

"We will also end the traditional divide between Further and Higher Education by linking the regional Learning and Skills Councils with higher education institutions in their region," promises Huhne.

Ensuring local accountability

In the NHS Primary Care Trusts - responsible for a key health commissioning role - will be made accountable to elected local councillors.

English regions will take responsibility for strategic health planning from the Department of Health. "They will also have the right to change the health service contribution," said Huhne.

A guarantee for basic standards agreed at the appropriate national, regional and local level, "rather than dictated by central government".

Greater freedom for public sector employers to pay more to recruit and retain staff and allowing the relevant elected authorities the revenue raising powers to fund such top-ups from local resources.

Encouraging the growth of mutual and voluntary providers as a further option for public service provision. Public Benefit Organisations which will be able to charge for services such as housing co-ops or sport centres.

Stop Whitehall interfering with day-to-day decisions

The limiting of Whitehall's role "to information gathering, dissemination and persuasion".

A full review of agencies and inspectorates "to ensure a simplified, comprehensive and authoritative system" that generates "meaningful information for users, voters andlocal policy-makers".

A merger of territorial departments into a single Department of the Nations and Regions.

Cuts to central government spending and administrative costs as power and finances are devolved "to the nations, regions, and local authorities by using 'blind budgeting' and 'zero-based budgeting' techniques".

NHS Organisation

Improve access to health and social care by increasing capacity via measures to improve staff retention and morale, early intervention and ending delayed discharges.Scrap the division between health and social care in England by merging local services into one local authority with one budget.

Limiting central government NHS responsibilities to national policy including public health, regulation, medical research, and medical, nursing and other professional training, and allow frontline doctors and nurses to take frontline responsibility.

Schools Organisation

Responsibility for achieving national curriculum criteria will be devolved to individual schools and teachers, overseen by local accountable elected authorities.