Tories are the real 'heirs to Blair' on NHS, says Osborne

In a provocative speech, the Shadow Chancellor will claim the Conservatives are more in favour of the Prime Minister's plans to give public service chiefs greater freedom to run their own affairs than Gordon Brown.

"This growing consensus between the current Prime Minister and the Conservative Party does not appear to include the next Prime Minister.

"And therein lies the political battle ahead," Mr Osborne will say.

The attack is part of a Tory strategy to paint Mr Brown, who will become premier at the end of next month, as a "roadblock" to reform.

But it risks angering some Right-wing MPs who believe their party must do more than adopt wholesale Mr Blair's reform programmes, which they see as half-baked.

In a speech in London, Mr Osborne will point to Labour's deputy leadership contest - and signals from allies of Mr Brown - as an indicator of the real "pulse" of the governing party.

"Listen to the hustings, read the websites and one thing is abundantly clear: we are seeing a lurch to the left and abandonment of the centre ground," he will say.

"The unreconstructed elements of the left have always opposed reform of the public services.

"The difference now is that the people around Gordon Brown are also making the case against choice and diversity - and challenging the key elements of the Blair settlement."

Mr Osborne will highlight remarks by deputy leadership challenger Peter Hain, who has spoken of "limits to reform", and Brownite minister Ed Miliband, who recently called for an end to the "obsession with choice" in public services.

He will also point to a claim by one of the Chancellor's key allies, Treasury Minister Ed Balls, that he "sees no desire for schools to set themselves up as independent trusts" - the key Blairite schools policy.

"Choice - the very heart of reform - now dismissed as a 'fetish' and an 'obsession' by those closest to the next Prime Minister,' Mr Osborne will say.

"The roadblocks to reform are being put into place.

"As the Prime Minister leaves office, there is agreement between him and ourselves on the essentials of the way forward - if not on the methods of achieving it.

"We both agree that the country needs taxpayerfunded public services that are free at the point of access, and which are exposed to consumer choice.

"And we also both agree that this choice should include, with certain proscriptions, the ability to receive that service from an alternative provider."

Mr Osborne will argue that Mr Blair has "attacked and alienated" doctors and teachers who are running the public services he has sought to improve.

"Our approach will be different," he will add.

"We will trust public service professionals, because we recognise that they want to be able to respond to the individual needs of their patients and pupils, but central targets and top-down control are preventing them from doing so."

And he will float policy proposals such as devolving health budgets to GPs and patients themselves.

He will also endorse Mr Blair's controversial city academies programmes, saying a Tory government would put no limit on the number that could be created.

David Cameron is said to have once described himself, in private, as the "heir to Blair".

Critics within the Tory party say his leadership has shown evidence of a shift firmly on to New Labour territory.

His concern over climate change, a softer line on crime and controversial pledge not to set up any new grammar schools have alienated traditional Tory supporters.

However he has also made public efforts to reassure the party's core vote, writing recently in a newspaper article: "Far from copying Tony Blair, I am learning from his many and serious mistakes."