Ministers will cancel most new proposed free schools that were announced by the Tories, including one being set up by Eton.
The Department for Education said that proposals for 28 out of 44 new free schools were likely to be junked following a review.
The move signals an end to the previous government’s flagship programme, which was championed by former education secretary Michael Gove.
Free schools are state-funded academies which are not controlled by the local authority and generally have more freedom than others.
They were aimed at driving up standards by providing more choice for parents and creating more competition between schools.
Over the last 14 years more than 650 have been established in England.
But Labour has always criticised them for being ‘ideologically driven’ and in some cases they have created a surplus of places where they are not needed.
It represents the latest ideological assault on Conservative ideas after Labour started charging VAT on private schools.
The proposals for 28 out of 44 new free schools which were proposed by the Conservatives, are set to be scrapped (pictured: Education Minister Bridget Phillipson on Tuesday)
The free schools were championed by former education secretary Michael Gove
The free schools likely to be cancelled include one of three new sixth forms in disadvantaged areas proposed by Eton College and academy trust Star Academies.
The sixth forms will go ahead in Dudley and Oldham, but not in Middlesbrough.
Eton headmaster Simon Henderson welcomed the confirmation that Oldham and Dudley will go ahead.
The projects have been in the pipeline for several years and will cost tens of millions of pounds.
Eton, the £52,000-a-year private school, had intended to contribute about £1million annually per school, and to offer online teaching and support.
The announcement triggered fury, with Meg Powell-Chandler, the Director of the New Schools Network, saying it regretted the Government’s decision.
‘Free schools work. Mainstream free schools expand opportunities for pupils and deliver excellent results,’ she said.
The Government also announced that around 50,000 new school places will be created for children with special educational needs and disabilities (Send) from £3billion funding.
Some of the funding will go towards creating places across the country in local mainstream schools for children with Send so they are less likely to have to travel far for their education.
It comes after Government figures estimated local authorities are funding home-to-school transport for around 180,000 pupils with Send.