Gordon Brown has said the voluntary sector could soon become as important as the state and private sectors.

Praising the "ingenuity and independence" of the voluntary sector, the chancellor said it was the "growing third sector of our economy".

He highlighted the role of the Charity Bill in reflecting the professionalism of those who are engaged in voluntary action and charitable work.

Brown said that civic renewal was "flourishing in a changing Britain".

"I believe we have a goodwill mountain just waiting to be tapped," he added.

Young people

The chancellor said the government planned to consult on a "national framework of community service for young people".

And ministers were considering how to help young and older people "fulfil their potential by expanding and extending the scope of mentoring".

Pointing to initiatives such as Timebank or the community service volunteers, Brown said that much had been done to promote the voluntary sector.

"But we also know that many still don't know how to volunteer, where to go, who to ask for help," he added.

"Many don't understand that you can give some of your time without giving all of your time.

"And many - particularly young people - find formal volunteering complicated and confusing."

Brown said that the forthcoming Budget would include a report on "what more we can do to help all those prepared to undertake some sort of voluntary activity".

Learning from American programmes, the chancellor said the government would build on existing UK pilot programmes to discuss "how we can do more" to promote volunteering.

He added that there could also be government backing for internet databases that would allow more people to participate in mentoring schemes.