The home secretary has put the voluntary and community sector at the heart of the government's efforts to foster active citizenship in the UK's divided communities.

David Blunkett's speech comes as the government seeks to calm heated rows over the meaning of British national identity and to project a positive vision of civil society by freeing-up the "bureaucracy, blockage, and the nightmare work" faced by activists seeking government support.

In the wake of last year's race riots in northern towns and renewed fears about the rise of far-right groups in across Europe, ministers are seeking a new approach to the citizenship issue.

Launching a new £4.5 million Active Community Unit on Wednesday, Blunkett called for a new government partnership with voluntary organizations and community activists to "renew civil society, fight crime and the fear of crime, challenge racism and break down the barriers between communities".

"I want to see a nation in which everyone - no matter their age, race or social background - has a sense of belonging and a stake in society.

"A nation in which individuals are empowered to have more control over their lives and have the opportunity to take part in decisions that shape their community," he said.

Publishing the initial findings of an official citizenship survey, the home secretary said the a thriving voluntary sector was a key indicator of a healthy community.

"The hallmark of a healthy community is a vibrant, thriving voluntary and community sector.

"Voluntary effort is key to building active communities and the Active Community Unit is going to refocus, co-ordinate and streamline government policy with the voluntary and community sector.

"It will become the gateway to government, a voice at the heart of the Home Office that listens and responds to the needs of the community," he told a selected London audience.

A Home Office survey of active citizenship found that four in ten are involved in formal civic affairs with the same proportion giving unpaid help to local clubs or charities.

Figures that the government will want to improve on as it seeks to revive community from the "bottom up".

"This research underlines the importance of supporting community development in the most deprived areas.

"Britain has a history of people working together but all too often government policies - like regeneration initiatives - have been focused too much on building physical infrastructure and imposing services on people rather than engaging them in decision making," the home secretary said.

Blunkett believes that Britain needs to overcome what he regards as a "weak sense" of what political citizenship should entail.

"Our values of individual freedom, the protection of liberty and respect for difference, have not been accompanied by a strong, shared understanding of the civic realm," he said during a December speech.

"This has to change. It is vital that we develop a stronger understanding of what our collective citizenship means, and how we can build that shared commitment into our social and political institutions."

With 113 projects set to benefit from a £4.5 million cash boost, the Active Community Unit will aim to make it easier for community groups to claim funding.

""We are in a staged approach seeking to cut away the bureaucracy, the blockage, and the nightmare work which has to be done at present by small community groups in order to access funds from different Departments, agencies and funding streams," said Blunkett.

At the heart of the fast track one-stop-shop will be a new website going live next month, allowing community activists to apply for grants of up to £10,000 online.

In an admission that central government had often let down community groups, forcing activists to compete for cash, Blunkett signalled a step change in funding arrangements for the voluntary sector.

"Government policies all too often force organisations, in different communities to compete with each other for funding," he said.

"It is our intention to drastically cut back on the bidding culture which causes so much difficulty to groups who spend time and energy applying for grants which are massively over-subscribed."