On Wednesday 15 September, Cabinet Minister and Chairman of the Conservative Party, Baroness Sayeeda Warsi, gave a speech to the Bishops of the Church of England in Oxford.

The speech comprised one element in a week punctuated by events connected with religious faith. In the space of five days, the Baroness celebrated Eid-ul-Fitr, dined with the Chief Rabbi to mark the Jewish New Year, and, today, is meeting Pope Benedict XVI.

In the speech, the Baroness acknowledged that society has got into a mess when it comes to talking about religious faith. In her view intellectuals, journalists, commentators and politicians have often been too quick to dismiss faith and its contribution to society. In order to get out of the mess, the Baroness set out a three point plan: 1) Government needs to understand the current state of faith in Britain. 2) Government needs to recognise the richness of the Anglican and wider faith-based contribution to society. 3) Government needs to draw the right conclusions for policy, especially when it comes to voluntary action, social cohesion and the Big Society.

So, how should we respond to the Baroness’ speech?

In the first place, we should welcome the fact that a senior politician is willing to speak so openly and directly about religious faith and society. It takes courage to address these thorny issues.

Secondly, the mere fact of the speech is more evidence that the ‘sea of secularism’ – to misquote Matthew Arnold –  is withdrawing. Tony Blair’s spin chief Alastair Campbell famously declared ‘we don’t do God’. The fact that he had to rule God out was evidence of religion creeping back into the political discourse. Baroness Warsi’s speech points to the fact that religion hasn’t only now crept back; it’s often centre stage.

Thirdly, the speech recognises that the role of Government is to be a facilitator for religious faith to offer its contribution. The state should keep open a plural public square that enables people of all beliefs to participate fully in it within the parameters of the law. Government shouldn’t attempt to usurp the role of religious faith communities, but act as an enabler and partner with them.

Fourthly, when it comes to creating a 'Big Society', government should recognise that there are places where the 'Big Society' already exists, often due to the contribution of faith based initiatives and organisations. The 'Big Society' comprises families, clubs, faith communities, fellowships, neighbourhoods, voluntary organisations - all of which are bigger than the individual, but smaller than the state.

So, there are plenty of reasons to respond positively to Baroness Warsi’s speech. There are, however, perhaps two significant challenges.

The first challenge concerns the bigness of the 'Big Society'. Is the 'Big Society' big enough to allow faith-based organisations to contribute to the public square, according to their distinctive beliefs, even when their motivating beliefs or values are ones that others in society passionately disagree with? Is there room, for example, in the 'Big Society' for Catholic Adoption Agencies who contribute to the common good but cannot, in all conscience, place children with gay couples? Or, is that a step too far?

Secondly, the big test for the government will be time. In the speech, Baroness Warsi committed the government to giving faith-based organisations the chance to do even more good, by taking control of local community buildings or running services where the community thinks they could do it well. The Baroness also promised a 'bonfire of the petty rules and prejudices that have held you and others back for so long. It seems crazy for the state to offer support to the voluntary sector and then shackle it with so many targets. And it’s crazy that bidding for funds as a faith-based charity is made more difficulty by a kind of religious illiteracy in local authorities.’ That will be music to the ears of numerous faith-based organisations, but the devil (if you’ll pardon the expression) is in the detail, and there remains plenty of detail to be worked out in these proposals.

The government’s discourse is very encouraging. The early indicators are that the government not only appreciates but increasingly understands the nature of religious faith. Ultimately, however, their commitment will be judged not according to their words but by their fruit.

Paul Woolley is Director of Theos.