Not-for-profit firms are to get a major boost from the government.

Housing firms, hospices and co-operatives will gain from the Companies Audit Investigations and Enterprise bill announced in the Queen's Speech.

"My government will introduce a Bill to create Community Interest Companies which will enable social enterprises to meet the needs of their communities in new and innovative ways," the Queen said.

It is one of five bills being piloted by the DTI. The aim is to give social enterprises the same flexibility as companies while staying within restrictions similar to those set for charities.

The firms will be "easy to set up, but subject to an objective and transparent eligibility test".

Under the legislation the businesses will be developed with primarily social objectives - with profits reinvested to develop its goals.

The bill is expected to ensure that assets are "locked" into being used for the community.

They will be allowed to issue shares but the dividends will be capped. The firms will also have to issue an annual report detailing how they have pursued their community objectives.