He promised legislation in November to introduce minimum sentences for sexual and violent crimes, burglary and drug dealing, which would be far more severe than those handed down over recent years. On education, he wanted a wider role for grant-maintained schools, selection, streaming, the return of grammar schools and single-sex schools. This ignores evidence in The Independent that the rising public debt will force the next government to consider tax increases. But Mr Major told the faithful at a hotel in Bristol that he wanted the next five years of Tory government to concentrate for the first time on social policy, law and order and changes to education. Speaking to party workers and supporters at a private dinner, the Prime Minister said he did not want "woolly thinking" to throw away the opportunity facing the Tories. His speech, filmed by a Saatchi and Saatchi team for use in the election campaign, showed the main Tory campaign attack against Labour: that the voters risk throwing it all away. We take a positive feeling from that, and it is our intention to continue with our extensive programmes to increase that efficiency," he said.A spokesman for Barclays said the bank was disappointed by the decision."We believe our proposals would have brought benefits to students in terms of quicker turn-round time on application, improved access through our 2,000 branches and faster availability of funds," he said.. John Major has privately told party workers that the prize awaiting the winner of the next general election will be the best economic prospects since the First World War.

The twin-track scheme would have given students the choice of a government loan or one on the same terms from a bank.Last night the loans company's chief executive, Colin Ward, said the failure to strike a deal reflected the efficiency with which it was able to do the job."Our cost-effectiveness had to be matched, and obviously the banks haven't been able to reach a deal with the Government. The Government aimed to transfer the financial risk from the scheme to the private sector, but it was hard to identify in advance how such changes could come about."We have concluded that in the immediate future our long-term goals can best be achieved through the sale of part of the existing student debt and the strategic contracting out of the administrative work of the Student Loans Company," she said.The existing loans company is wholly owned by the Government and funded by the Treasury. The Government tried to set up a loans scheme involving the banks seven years ago, but on that occasion they pulled out.Making the announcement Gillian Shephard, Secretary of State for Education and Employment, said that pounds 2bn in outstanding loans had built up since the scheme was launched in 1990. Students will still be able to take out loans on exactly the same basis as before.Ministers had hoped that in future the banks would take on much of the cost of running student loans, but the banks were initially sceptical about the idea.

Barclays, The Clydesdale Bank and National Home Loans did eventually bid for the contract, and had been expecting an announcement at the end of July. Yesterday they said they were shocked and disappointed at the Government's change of heart.Last night some of those involved speculated that the banks might have been demanding more guarantees than were on offer. Government plans for a twin-track student loans scheme run partly by the banks have been abandoned, ministers announced yesterday. The proposals, originally due to be implemented this October, had already been delayed for a year because of problems in arranging the deal. Now financial institutions will be invited to "buy" part of the existing debt and the administration of the existing loans scheme could be contracted out. "If I was being unkind I would say it was a gimmick," said Eric Musgrove, associate publisher of FW Magazine (formerly Fashion Weekly)."If I was being kind I would say this was just an extreme example of giving good service to jeanswear customers."Mr Musgrove sees the scheme as part of a wider trend where jeans companies offer a range of fits and leg lengths, as well as cuts specifically for women: "In the last three or four years there has been much greater awareness that you can't get young women to buy men's baggy jeans, particularly as a much slimmer look has come into fashion."Historically and socially jeans have come a long way. Gianni Versace now has a line called Jeans Couture, which is a contradiction in terms.