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Purpose

The purpose of this paper is to discuss the ways in which concepts of regeneration, sustainability and the Third Sector (TS) are understood and expressed in the policy priorities of the Labour Government in the UK. The paper locates this discussion in the context of a small community action group in Nottingham and seeks to explore the ways in which the experience of activists and practitioners see their “world” as being congruent with that of the “world” represented in the policy literature.

Design/methodology/approach

The paper combines an analysis of the policy literature and a discussion on the theoretical and conceptual ideas implicit in the programmes with data collected through observation and interview of key activists involved in the group.

Findings

The paper suggests that while small‐scale TS organisations can play an important part in the regeneration/sustainability agenda as a result of their size, values and flexibility it is these values which are at risk given the underlying ideological approach of the reform agenda.

Research limitations/implications

The paper provides a snap shot of experience and situates that practice in the theoretical/conceptual literature and so raises some important questions for practitioners as well as researchers.

Practical implications

The paper has direct relevance for TS agencies and researchers.

Originality/value

The paper points to the conflict and tension between local/community‐based organisations in which ideas of trust and ethical decision making are negotiated differently compared to public sector agencies.

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