Plans to give faith groups better access to local authority funding to help with community projects could be introduced under new legislative guidelines being proposed by MPs.
A Faith and Localism Charter is now being reviewed by the All Party Parliamentary Group for Faith and Society.
Supporters of the measure claim the current system discourages local councils from commissioning services from faith based organisations because of a fear they may use the money to convert people.
Faith groups have been credited with the development of food banks and many other social services across the country since the start of the recession, jumping into the place of cash-stapped local authorities.
But formal guidelines to help them work together or 'out of date' legislation is creating problems, according to supporters of the plan.
Committee Chairman of the All Party Parliamentary Group for Faith and Society, Labour MP Stephen Timms, who's a Christian, announced the idea this morning.
He spoke to Premier's Des Busteed at Faith Action's launch of a collection of essays on the role of faith in society in the House of Commons:
Francis Davies from the Cathedral Innovation Centre was also at the event and told reporters why the Charter is needed:
Portsmouth Cathedral is already helping entrepreneurs launch small businesses as part of its response to the economic climate.
Tory MP for Portsmouth Penny Mordaunt told Premier she also supports the Charter: "I think it's giving communities permission to do things and a green light to go ahead and actually be sensible about how they organise themselves and how they use local funding."
Meanwhile, the Faith in Enterprise Award Fund to help local congregations create jobs was also launched at the event today by Eric Pickles MP, Secretary of State for Communities and Local Government.
The national initiative has the support of the Archbishop of Canterbury and comprises a £200,000 fund of micro-loans and access to mentors.
A letter of support from the Most Revd Justin Welby, was read out at today's launch, which said: "I wanted to take this opportunity to say how very pleased I am that these awards will enable faith communities to support young entrepreneurs as they develop and establish new businesses.
"Portsmouth Cathedral Innovation Centre has led the way in this by welcoming new businesses into its office space and supporting their leaders with advice, with encouragement and with much needed practical and financial support.
"These awards will help extend that work across the country.
"I am convinced that there is much more that can be done by religious and civil society organisations working together to enrich our communal life, so I am delighted to commend not only these awards, but also the collaborative model they have at their heart."
Mr Pickles tells Premier why he's backing the scheme:
The All Party Parliamentary Group for Faith and Society is expected to present the Faith and Localism Charter to government in the Autumn.