The proportion of offenders jailed for robbery, sex offences and burglary in England and Wales fell last year to its lowest level for at least 10 years.
The Ministry of Justice figures showed less than 96,000 offenders were jailed in 2007, the lowest number since 1997.
They also showed community sentences rose by 40% over the last decade.
The government insisted it would always provide enough prison places for serious offenders, and said non-custodial sentences can be effective.
In 2007, 55.5% of people convicted of sexual offences were jailed, along with 39.2% for burglary, and 53.8% for robbery, according to the figures.
In 1997, the figures were 56.3%, 45.3% and 71.6% respectively.
"A tough community sentence involves payback to society"
The average lengths of sentences for robbery, theft and criminal damage fell in the last decade, the figures showed.
However, taking into account all offences, the proportion of people sentenced to a prison term last year remained at 6.8%.
A Ministry of Justice spokesperson said prison was not always the "right answer" for less serious offenders.
"In some of these cases, a tough community sentence can be more effective than a short prison sentence - more effective in terms of rehabilitating offenders, turning them away from crime and therefore giving greater protection to the public," she said.
"A tough community sentence involves payback to society, and can also be effective in changing patterns of behaviour in often chaotic lifestyles, turning offenders away from crime."
She added that in 2007, an additional 1,700 prison places were created, with another 3,100 due this year.
'Exceptional circumstances'
The figures also showed nearly 2,000 people received cautions for sexual offences, including 34 for rape or attempted rape in 2007.
Nearly 300 cautions were given to people who admitted having sex with under 16s, the 2007 Criminal Statistics bulletin revealed.
Cautions were also handed out to six people who admitted breaking child prostitution or child pornography laws.
They can only be given out if the offender admits they committed the crime and are usually given for lesser offences.
A Ministry of Justice spokesman said: "Although there is a high percentage increase of rape cautions, the number of cases actually remains very small (32 in 2007 and 20 in 2006).
"Only in exceptional circumstances will the police and CPS decide that it is in the best interests of the victim not to prosecute."
The Ministry of Justice figures also showed a record number of offenders were cautioned, given penalty fines or warning about cannabis possession in England and Wales in 2007.
The overall number of recorded detections - the number of crimes cleared up by police - dropped by 7%.
This is attributed by officials to changes in the way the figures are compiled.
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