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Proposals to strengthen the relationship between voluntary and community organisations and the government have been welcomed.

The government plans to introduce a simpler and stronger opt-in Compact Plus scheme to reduce red tape and attempt to give the voluntary sector the same status as public sector bodies.

Compact Plus will build on the work of the Compact, a set of principles and undertakings introduced in 1998 to provide a framework for relations between government departments and the sector. It will be easier to implement than its predecessor, with a stronger emphasis on secure funding arrangements.

Stuart Etherington, chief executive of the National Council for Voluntary Organisations, said Compact Plus could make "an important contribution to the continuing improvement of government and voluntary sector relationships".

The consultation document also proposes a sector-led agency, Capacity Builders, to manage the ChangeUp fund, to improve voluntary sector's infrastructure.

• Consultation from www.active communities.homeoffice.gov.uk