Speaking at the NAVCA annual conference, Miliband said effective partnership with the sector would strengthen communities and transform public services, while also ensuring that it also retained its independent campaigning voice.

“Partnership is a two-way street – we need understanding, openness and respect on both sides,” the minister said. “For our part, government at all levels needs to live by the principles of the Compact, with multi-year funding the norm. Meanwhile I know the sector recognises it must do all it can to work with and respect local government, the democratically elected voice of local people.

“Councils for voluntary services do incredibly valuable work in a pressured environment with frontline organisations, and it is crucial government supports them in the right way,” Miliband added.

Responding to the speech, NAVCA chief executive Kevin Curley said there was now a chance that the Compact could become an effective framework for the relationship between local government and the voluntary and community sector across England.

“I am impressed that the minister recognises VCS involvement in LAAs [local area agreements] is not as strong as it needs to be and that this will be addressed in the local government White Paper, and am very pleased to hear the minister recognising the ongoing importance of grant funding for small local organisations.

At the conference, delegates passed a proposal from trustees to invite a wide range of local VCS infrastructure organisations to join NAVCA. The motion, which achieved 97% support, means that organisations such as the Learning and Skills Consortia and Community Empowerment Networks will be able to become members of the umbrella group.

Delegates also elected Mike Martin, director of Reading Voluntary Action, as chair of NAVCA. He succeeds Mike Eastwood.