Liberal Democrats to create 'startup allowance' for new small businesses - The Guardian

Liberal Democrat leader Tim Farron said: 'Those who take the chance to set out on their own and create a business should be celebrated and supported.' Photograph: Yui Mok/PA

The Liberal Democrats are to make an "unashamed land grab" for the centre ground with an offer to help fund startup businesses.

The party's leader, Tim Farron, will use the second day of the Lib Dem conference in Bournemouth to outline a new "startup allowance" worth £2,600, or £100 a week, to new small businesses.

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 new policy is part of the Liberal Democrats' rebuilding effort after May's devastating general election performance. The allowances would be paid for by reversing cuts to corporation tax announced by George Osborne in the summer budget.

A party source said: "This policy is an unashamed land grab for those Labour voters who understand and care about Britain's economic stability and who look at Corbyn's offering and despair.

"As Corbyn leads his party down a blind alley, away from the centre left, the Liberal Democrats are rebuilding ourselves as the only credible opponents of this Conservative government."