Shadow education secretary Stephen Twigg set out his vision for the education system at Labour's party conference.
He also lashed out at the Education Secretary, Michael Gove, claiming even Conservatives think he is "extreme and out of touch".
Mr Twigg said: "Michael Gove wants narrow, elitist education.
"We are the party of One Nation education.
"Instead of going back to O-Levels, we will look forward.
"Instead of coming up with a plan on the back of an envelope, we will engage the experts - in business and education."
Mr Twigg outlined plans for a New Deal for Teachers, including an idea for graduates who take up posts in schools in poorer areas having part of their tuition fees paid off by the taxpayer.
He also said a Labour government would ensure "incompetent" teachers were removed from the profession in an effort to raise the overall status of the job.