New Tory leader Iain Duncan Smith said he wants an end to the ''ration book state that locks people into NHS queues and failing schools''.

He promises to create a ''welfare society'', as opposed to a welfare state, by encouraging families, communities and groups and institutions to do more.

He is a Euro sceptic and says the party must unite over Europe. Britain does not need or want the single currency, ``Euro Army'' or European federal government, he says.

He will oppose scrapping the pound and campaign against the single currency in a referendum but will be ''tolerant'' of euro supporters.

As defence spokesman he also said the UK should back the US ''Son of Star Wars'' missile defence programme, despite opposition from many MPs.

Another key point in his election manifesto was on the issue of education. He said that pupils should be offered education credits, allowing parents to move their children from a failing school and should have greater control over their budgets and how they are run.