The home secretary, Jack Straw, has pledged £260 million to be spent on reform to the youth justice system and said that "we are at last beginning to see those reforms bear fruit".

In 1997 an overhaul of the youth justice system was a key election "pledge" for Labour. Although the government are widely seen as failing on the promise, Straw argues that it will be met by the "target date of March 2002" - a timescale likely to be into Blair's second term.

The average time to process persistent offenders has already been cut by seven weeks towards the pledge of 71 days, the home secretary said.

In a Wednesday speech to a conference organised by the Youth Justice Board, Jack Straw said that he was in no doubt that Labour's reforms, so far, had made a "significant contribution to the overall drop in crime - down 10 per cent between 1997 and the end of 1999".

"We have put in place the new powers the courts need, and the local and national structures to make those work. We are establishing a new ethic of partnership between the courts, the police and all other professionals dealing with young people. And we are investing to make the new system effective," he said.

Announcing the publication of the Youth Justice Boards four-year strategy for secure youth custody places - the board has had responsibility for "commissioning and purchasing" detention for under-17 year-olds since last April - Straw pledged £250 million to be spent on an improvement in standards, an even distribution of secure custody around England and Wales, and better provision for young women and vulnerable men.

The home secretary also announced £9 million in funding for 100 new Youth Inclusion Projects, using mentoring and sports to prevent crime, as well as guaranteeing funding for 70 existing schemes and 150 summer projects.

Straw also claimed that new powers given to courts to impose community orders are beginning to bite with nearly 500 parenting orders, over 3,500 action plan orders and 3,000 reparation orders imposed since June.

Intensive supervision and surveillance programmes targeted at the 2,500 most persistent young criminals said to be responsible for up to a quarter of offences are to start in 22 deprived areas form April 1.

"It is working," said Straw. "Our reforms do not just mean safer communities. A more effective youth justice system also means an end to the waste of young lives."