Conservative leader David Cameron says that he intends to increase the insolvency threshold from £750 to £2,000 if he becomes Prime Minister at the next general election.
The proposal came along with a selection of other measures he said he would introduce in order to help small firms and start-up businesses.
Speaking on the Andrew Marr show on BBC radio at the weekend, Cameron said that many insolvencies were simply attributable to the government chasing tax. He explained, “when you look at the figures, more small businesses have gone bankrupt in this recession than in previous recessions and a number have been pushed there by government itself.”
He added that he wanted to make the process of setting up a company much quicker and easier than it currently is. He said that he intended to make the UK one of the fastest places in which to register a new company in order to encourage entrepreneurship and foreign investment.
Cameron explained that he also has plans to lift a ban on people living in social housing from starting their own businesses. He said, “a huge number of small businesses are started in people’s homes but many social landlords forbid you.” He said through discussions with these landlords he intended to change this rule. 
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