Mr Brown will say drugs strategy needs to enter a new phase

Mr Brown, who will succeed Tony Blair as prime minister, admitted there was a "big problem" and called for earlier treatment for addicts.

He also says education schemes should start at primary schools and more role models are needed to raise awareness.

"We have a big problem and we are going to need a new approach," he said.

Although Mr Brown is the only candidate for the party leadership, he is taking part in hustings events alongside the six candidates for the deputy post.

Crime cost

He has pledged to use the time before he becomes prime minister "listening and learning" to police, hospital staff and others across the country.

On Wednesday, he held private meetings with police chiefs and staff in Birmingham, before discussing drugs at the hustings event in the evening.

There has been a 16% decline in drug use since 1998, but levels remain unacceptably high, he said.

We cannot allow a situation to develop where so many thousands of young people in particular become victims of drug dealers Gordon Brown

The value of the illegal drugs market in the UK is around �5bn, the government says, while drugs-related crime in England and Wales is thought to cost more than �13bn.

Mr Brown said he had been told that 75% of all crimes in Birmingham where money was stolen was drugs-related.

"We cannot allow a situation to develop where so many thousands of young people in particular become victims of drug dealers," he said.

"And we can't allow a situation to develop where we start to treat them and then we lose them and they become completely remote from the medical services that can help them."

Frank campaign

He also said he wanted to be able to treat addicts earlier, before they got arrested or imprisoned.

He advocated the use of more community role models and ensure better education about the dangers of drugs at primary as well as secondary school.

Community leaders have not been consulted enough and drugs education schemes have concentrated too much on secondary schools, according to the chancellor.

Mr Brown also said public advertising campaigns - like the Frank campaign - needed to be reviewed and the effectiveness of drug treatment orders, testing orders and community orders.

Richard Kramer, policy director at the drugs charity Turning Point, welcomed Mr Brown's "openness" and urged the government to make the health impact of drug use its top priority.

He said there was a "new generation" of injecting drugs users and HIV and Hepatitis C among them was rising.

He added that a "holistic approach" was needed, where addicts were given housing and employment support as well as drug treatment - to help reduce drug-related crime.

In April a report by 12 experts for the independent UK Drug Policy Commission found that the UK had an unusually severe drugs problem and the government's strategy had had a limited impact.