John Denham, MP for Southampton Itchen, said that the significant sums ploughed into regeneration is at odds with grants to community groups that exist in the same deprived areas.
Speaking at a Nacro conference on black young people and the criminal justice system last week, Denham said the inequality hindered the important work done by community groups in providing role models for black young people.
"You're talking about areas in London with millions of pounds worth of regeneration funding, but the Government is still making grants of 1,000 here and 1,000 there for community work," he said.
Paul Cavadino, chief executive of crime-reduction charity Nacro, echoed Denham's comments and said one answer could be to divert a percentage of regeneration cash to community groups.
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