From The Daily Telegraph
By Jonathan Wynne-Jones
The Archbishop of Canterbury has endorsed the report.
The damning critique of Labour, which is endorsed by the Archbishop of Canterbury, says ministers are only paying "lip service" to the Anglican Church while "focusing intently" on other religions.
It claims Gordon Brown's Government is failing society and lacks a moral vision for the country.
And in an end to decades of tension between the Church and the Conservatives, the comprehensive study praises the Tories for their "strident" approach to combating poverty.
Instead it says it is Labour which is failing to acknowledge the breakdown in society and excluding vital religious voices.
The report urges the Government to appoint a minister for religion, who would serve as the Prime Minister's faith envoy and utilise the untapped reserves of volunteers in churches and charities.
It states: "We encountered on the part of the Government a significant lack of understanding, or interest in, the Church of England's current or potential contribution in the public sphere.
"Indeed we were told that Government had consciously decided to focus...almost exclusively on minority religions."
The highly critical report, titled Moral, But No Compass - a twist on Mr Brown's claim to have a "moral compass" - carries significant weight as it has been endorsed by the Archbishops of Canterbury and York and expresses the views of three-quarters of the Church's bishops.
It echoes claims made by the Bishop of Rochester, the Rt Rev Michael Nazir-Ali, last week that the decline of Christian values is destroying Britishness and has created a "moral vacuum" which radical Islam is filling.
The report, which has been seen by The Daily Telegraph, says that while the Government has tried to improve social cohesion, it has failed to appreciate the potential contribution of Christian groups to the "civic health and wellbeing" of society.
"We were told that while capacity studies had been undertaken by Government with regard to British Islam, similar studies had not been carried out for any of the UK's largest faith communities.
"If what we were told is correct, the churches simply do not register on the policy-making radar in serious terms.
"The Government has focused so intensely on minority faiths that it has failed to develop a coherent evidence base for the largest religious body in the UK, the Christian church."
The report adds: "The government is planning blind and failing parts of civil society. The government has good intentions, but is moral without a compass.
"Every participant in our study from the Church agreed that there was deep 'religious illiteracy' on the part of the Government."
A report published in 1985 damned Thatcherism for the growing spiritual and economic poverty in Britain.
But now, in a remarkable shift in the stance of the Church, the Conservatives are praised for their "genuine thirst to understand and combat poverty".
The new study, commissioned by the Church and written by academics based at the Von Hugel Institute at Cambridge University, states: "Despite many voices in the Church telling us, 'there is no difference between any of the parties on these issues,' the reality is otherwise.
"Of all our interviewees, Conservative advisors and politicians were among the most comfortable and enthusiastic regarding involving faith groups in this renewal of the third sector, and believed that Christian churches had something 'unique' to bring to the table as strong local leaders."
Eric Pickles, shadow secretary for communities and local government, said: "David Cameron's Conservatives recognise that we have to tackle a damaged society and that poverty can't be cured without the help of voluntary organisations, such as the Church which plays a vital part.
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