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Community-based organisations are being "co-opted" by the government, which could reduce their ability to tackle social exclusion, according to a report by an independent think-tank.

The report, published by Demos, finds that some organisations fear they may be used as "instruments of government policy" which may compromise their independence and lose the trust of those they serve.

The results, based on more than 40 community-based projects, come after the government identified them as a vital link to socially excluded communities.

Sukhvinder Stubbs, director of the Barrow Cadbury Trust, which funded the research, said: "Government is not playing to the strengths of community-based organisations."

- Inside Out: Rethinking Inclusive Communities from www.demos.co.uk