The allowance would be worth £2600 over the first six months (£100 a week) after they set up their new business. It comes as part of a leadership focus on building upon the economic credibility won by our five years spent in government.
Farron said: “Liberal Democrats believe that if you have a dream you should be supported to fulfil it. Those who take the chance to set out on their own and create a business should be celebrated and supported.
Lib Dems recognise the courage of those who seek to create something new.
While Labour have said they now want to strip Government support for businesses and the Tories focus on giving tax cuts to giant corporations, we want to focus on entrepreneurs and small business seeking to grow.”
The policy, which it is estimated would cost £26m a year would be funded by reversing the most recent reduction to corporation tax say the Liberal Democrats:
Farron went on to explain that The Start Up Allowance would be open to anyone starting a new business with a loan from the start-up loans facility, which provides loans and mentoring to help new business owners develop their business plan.
Concluding the announcement Farron said: “In Government Vince Cable and the Lib Dems ensured people who wanted to start a business got loans to help with start-up costs and mentoring support through the £1bn British Business Bank. It was a key Liberal Democrat demand extracted in exchange for the Tories failed Shares For Rights scheme.
We also created the New Enterprise Allowance – which meant those in receipt of Job Seekers Allowance, or another out of work benefit who became self-employed, got an allowance worth up to £1,274 to help pay living costs – effectively continuing the benefit payments for the first few months while the business grew.”
