the running of schools with a grant from the state. Mr Balls said: "If parents understood what the Swedish model meant it would be as unpopular as it is inside the Conservative party itself." He cited Les Lawrence, from the Local Government Association -- a leading Conservative, who told the Commons select committee on education last week that the Stockholm was back-tracking on the plan as it had caused "dissent and division" within the education system. Mr Gove had said he wanted 3,000 schools to operate under this policy but the Swedes had only managed to establish 900 "free" schools in 20 years. Research into the scheme has shown they have increased segregation between faith and ethnic minorities.