TONY BLAIR'S authority appeared to be crumbling last night as he faced Cabinet revolts on two key policies.

A split between ministers forced an embarrassing delay to a decision on the extent of exemptions to the ban on smoking in pubs.

It was reported last night that a last-minute compromise would allow sealed-off smoking rooms to be set up in pubs that do not serve food.

And it was thought likely that Health Secretary Patricia Hewitt had lost her bid to include private clubs within the ban.

However, the Department of Health said ministers on the Cabinet public health sub-committee were still discussing both issues, saying nothing had been settled.

As confusion mounted, it was announced last night that the Health Improvement and Protection Bill would not be published today as planned.

Meanwhile, the Conservatives piled pressure on the Prime Minister over his plans to free schools from local authority control by cheering the announcement in the Commons chamber.

Tory support for the shake-up will fuel dissent among Labour MPs already emboldened by Deputy Prime Minister John Prescott's near-open revolt over the proposals.

Mr Blair's normally ultra-loyal deputy made it known at the weekend that he feared that allowing schools to set their own admissions policy would trap the poorest pupils in "sink schools".

Former Health Secretary Frank Dobson said he believed the public row over a smoking ban was evidence that the Prime Minister was struggling to keep his ministers in line.

He said: "I think it is probably one of the growing products of the fact the Prime Minister is going and his authority isn't as strong as it used to be."

Mr Blair has said he will stand down before the next election, but will serve a full third term - suggesting he does not want to leave Downing Street until 2008 at the earliest.

All departing leaders are vulnerable to a gradual loss of power during the countdown to their leaving, as ministers feel increasingly free to flex their muscles.

In the Commons, the Labour benches fell silent while the Conservatives erupted with glee as Education Secretary Ruth Kelly unveiled her plans for parent power in schools.

The reaction reflected the Tory belief that allowing schools to become independent trusts will recreate grant-maintained schools - which were scrapped by Labour when it came to power in 1997.

Mallon backs Cameron - P2

Teachers' anger - P3