Chancellor Gordon Brown has announced a four-year £36 billion programme of refurbishment and rebuilding to make England's schools and colleges "fit for the 21st century".
Mr Brown told MPs that the massive programme of renovation was part of a Government drive to make the UK "the most educated nation in the world".
And he announced a £130 million boost in the money paid direct to headteachers in England each year to support personalised teaching, bringing it to an average of £200 per pupil for primaries and £225 for secondaries.
Following Tuesday's publication of the Leitch report on skills, Mr Brown said that education was the key to Britain's ability to compete in the globalised world economy against emerging giants like China and India.
"I have become convinced that for Britain to rise to the global challenge, we should commit now to year-by-year improvements in investment in our schools and education establishments," he said.
He set a goal of delivering 12,000 new or completely refurbished schools - half of all primaries and 90% of secondaries - as well as 100 rebuilt colleges and 3,500 new children's centres.
The works will involve more than half of England's 21,000 schools, and similar announcements are due to be made to cover Scotland, Wales and Northern Ireland.
