The era of 'no such thing as society' is at an end

Gordon Brown

Over time, the aim is to hand over responsibility for major government initiatives such as the New Deal for the unemployed.

Lord Falconer and Paul Boateng, who will head the new Active Communities Unit, joined the chancellor on Thursday to announce details of how the cash will be spent:

• �27m will go to university student volunteering schemes to be spent over three years in England.
• �60m to develop mentoring and to modernise the infrastructure of voluntary and community groups
• �70m for the Children's Fund, which was announced in the Spending Review 2000
• �50m for community groups in deprived areas
• �120m to fund volunteering in public services and a new National Experience Corp for the over-50s. A National Experience Initiative group headed by Baroness Sally Greengross will look at how this can be done.

The government already works with and helps fund charities and community organisations on a range of projects.

But the new plans, announced in the UN International Year of the Volunteer, are being portrayed as a big idea for a second Labour term, the BBC's political correspondent says.

'Mistaken approach'

Traditionally Labour is the party of big government, offering the state as the solution to most of society's ills, he said.

But Mr Brown now says that approach was mistaken, and argues there are better mechanisms for delivering important services.

Mr Brown said: "It's time to transform the relationships between government and voluntary action.

"I believe that the projects we're now financing will bring out the greatest strength in voluntary action and will be a sea change in the relationship between the state and voluntary section for the future."

Over-50s in particular to be encouraged to volunteer

Mr Brown told a volunteers' seminar in Downing Street: "The next five years will witness the biggest transformation in the relationships between the state and the voluntary sector.

"Just as the era of 'no such thing as society' is at an end, so too the era of centralising government and 'Whitehall knows best' is over, and a new era - an age of active citizenship and an enabling state - is within our grasp.

"Increasingly, the voluntary sector will be empowered to play a critical role, ranging from under-five provision and preventative health, to adult learning and the war against unemployment and poverty."

Difficulty attracting young volunteers

Andrew Watt, of the Institute of Charity Fundraising Managers, has welcomed the initiative.

"Anything that can encourage greater involvement between individuals in the community and the voluntary sector has to be a good thing.

"It's becoming increasingly difficult for voluntary organisations to attract support from the public, particularly from younger people."

However, he warned that voluntary organisations should not be duplicating what the state provided or should provide.