Looking ahead to the next decade, Milburn heralded a move towards "diversity in provision" of public services in which there was political will for a "potentially greater role for the voluntary sector". But he warned charities: "You won't get something for nothing".

"The price of greater involvement is greater accountability, and I know that for some in the sector, a bigger role is seen as a mixed blessing," he told the audience at the ACEVO conference in London. "Frankly, the sector cannot have its cake and eat it."

Apparently endorsing ACEVO's campaign for reform of charities' governance structures, he said that charities would have to "get their house in order about how they are organised and how they are managed". While some would opt for traditional governance structures, for others "the relationship between executives and non executives will have to be re-examined", he said.

In return, the government should commit itself to ending the "vicious cycle" created by short term funding at a local level, and every government department should develop a concordat to affirm the role of the sector in service delivery. Charities should also be given the automatic right to bid to supply services where these are to be contracted out. The moves would, said Milburn, "bring the voluntary sector in from the cold".