Former health secretary Alan Milburn, believed to be closely involved in the drawing up of Labour's next manifesto, called for a new "third way", with charities being afforded the same rights as the private sector.
"Over this next decade the voluntary sector should become as integral to public-service delivery in Britain as either the public or private sectors," he told an Association of Chief Executives of Voluntary Organisations conference.
Ian Vallender, director of policy at the National Council of Voluntary Child Care Organisations, said: "We are already delivering a whole range of services at a local level but we need a level playing field with the private sector.
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