Plans to ban councils from funding services aimed at specific ethnic groups have been welcomed by Birmingham MPs.
The Government is to order authorities to stop funding organisations which appear only to serve one section of the community.
Birmingham City Council currently funds bodies such as the Irish Welfare and Information Centre in Digbeth, the Asian Welfare Association in Small Heath, the Asian Resource Centre in Handsworth and the Chinese Community Centre in central Birmingham.
They offer advice on housing and employment. Despite their names, they say they serve all sections of the community.
But councils will be told to avoid funding any new organisations which appear to be aimed at specific groups, and to review the bodies they already support.
The proposals were unveiled by Communities Secretary Hazel Blears, who published a report warning that funding such organisations could encourage "insularity" among those being served, and resentment in other ethnic groups who believed they were not getting a fair deal.
Authorities will be allowed to make exceptions if they can demonstrate an ethnic or religious group has a genuine need which other communities do not have.
Ms Blears said: "There may be cases where it is legitimate and necessary to target resources at dealing with a specific issue like working with young men to tackle gun crime in the black community - but overall we need a rebalancing in how we focus resources with much greater importance placed on integrating different communities."
The announcement was welcomed by Birmingham MP Khalid Mahmood (Lab Perry Barr).
He said: "This is something I have been calling for since I first became an MP in 2001.
"We don't need communities feeling separated from each other, or feeling that others are getting privileges which they don't have.
"Existing organisations need to broaden their horizons and start interacting with the whole community."
Roger Godsiff (Lab Sparkbrook and Small heath) said: "I support what the Government is doing.
"There is certainly a degree of resentment among some cultural groups who feel that others are getting the lion's share of the money available for specific projects such as employment resource centres. However, I am also glad that the Government has recognised there may be occasions when communities do have genuine specific needs, such as language classes for people with English as a second language."