The government must cut back on bureaucracy to help social enterprises compete for public sector contracts, Alan Milburn has said.

Labour's election chief said that the voluntary sector had a major role to play in providing services as the government moves to reform its delivery mechanisms.

Speaking at a Social Enterprise Coalition conference in Manchester, the Cabinet minister also praised the "astonishing diversity" of the sector.

Milburn said that the services delivered by the voluntary sector "improve quality of life, and give people greater control over their own lives, regardless of status or wealth".

"I believe that social enterprise can extend and deepen its role, not just in reforming public services, but in spreading opportunity and unleashing aspiration in our country," he said.

"Because so many social enterprises are grounded in local communities, they are uniquely well placed to build the social capital that can tackle poverty, fight crime and improve health.

"In an era where citizens are better informed and ever more inquiring, doing things to people no longer works. It is doing things with them that now holds the key."

Taking control

Milburn said social enterprises could help communities take greater control over the provision of services, as well as offering greater choice.

"The first steps have been taken. In local government, more services are now provided by the private sector," he said.

"Now, we can take the next steps. We need to move beyond an automatic assumption that the only alternative to the public sector is the private sector.

"Over the next decade, social enterprise, and the wider voluntary sector, should become as integral to public service delivery in Britain as either the public or private sectors.

"It can help open up public services so they become more responsive and offer those who use them far greater choice."

Partnership

Milburn added that social enterprises should work as partners with the state, alongside private companies.

But he accepted that realising this objective would "require a new drive to bring the sector in from the cold".

"That will involve, not just leadership from national government, but also action from local agencies.

"After all, most of the relationships between the sector and government are local, often involving primary care trusts and local councils.

"Here, as we all know, there is room for considerable improvement.

"Too often contracts are tentative and short-term. Bidding and procurement processes are bureaucratic. Decision-making is too slow.

"Announcements are often delayed. Goalposts can be moved at the very last moment. Poorly written contracts place services at risk.

"This is a vicious cycle that limits the sector's ability to deliver. A level playing field for public sector procurement is urgently needed. And we need to work together to make it happen."

Words to reality

Responding to the speech, the Social Enterprise Coalition welcomed the recognition of a role for social enterprises "in spreading opportunity and unleashing aspiration".

"His vision that social enterprise will be as integral to public service delivery as either the public or private sectors is a significant step forward," said chief executive Jonathan Bland.

"We now challenge the current government to turn words in to action and make these commitments a reality."