Parents are to be given vouchers to "buy" state education in a school of their choice under plans set out by the Conservatives.

Under the "state scholarship" plan parents would be allowed to use the voucher to choose a school from the independent or state sector.

While the voucher could be redeemed with a school outside the local catchment area it could not be used as part payment for private school fees.

Charities, community groups, companies and parents' groups would be able to manage and set up schools under the scheme.

The party says the system would allow parents to remove their children from sink schools.

The scheme would initially be rolled out in inner city areas, where many of the worst schools are located.

"Our proposals will give real power to parents so that they can get the best for their children. We are determined that children do not get left behind in failing schools," Conservative leader Iain Duncan Smith said.

The Tories would also lift restrictions which limit schools expanding in order to create centres of excellence.

"Our inner cities especially are suffering from low expectations and low achievement. Our proposals would give children the chance of a quality education and the chance to reach their full potential," Duncan Smith said.

"One in three of London's 14 year olds are unable to read, write, and count properly and almost a quarter of a million children played truant last year in London alone."