A new Government scheme aimed at helping young people start their own businesses has been announced in the 2026 Budget, following calls for greater support from Isle of Wight West MP Richard Quigley.
The Young Entrepreneurs Allowance will be piloted in England, providing successful applicants with financial support towards their living costs during the first year of running a business.
The initiative is intended to help aspiring entrepreneurs overcome some of the financial barriers associated with starting a business, particularly those without access to family financial support.
Mr Quigley has welcomed the announcement, having previously raised the need for greater support for young entrepreneurs during discussions with Chancellor John Healey MP.
According to the MP’s office, Richard visited Number 11 Downing Street earlier this week to discuss the proposals, with the Chancellor acknowledging his work on opportunities for young people.
The Budget also includes a new Founders’ Relief, offering eligible founders of high-growth innovative companies a reduced 10% rate of Capital Gains Tax on up to £10million of lifetime gains.
Earlier this month, Mr Quigley’s office hosted its second annual Skills and Growth Summit, bringing together Isle of Wight employers, education providers and young people to discuss employment opportunities, work experience and routes into the workplace.
The MP believes the newly announced allowance could provide further opportunities for young people on the Isle of Wight who are considering starting their own businesses.
Richard Quigley, MP for Isle of Wight West, has said:
“Today’s announcement from the Chancellor demonstrates a real commitment to both the future of our economy and the next generation of workers. I’ve consistently made the case to the Treasury that we need to do far more to foster innovation, ambition and entrepreneurship among young people, and I’m delighted that they have embraced that challenge.
“This scheme has the potential to open up exciting opportunities for young people across the country, including here on the Isle of Wight. I look forward to continuing to champion it and to seeing the positive impact it can have on both local communities and the national economy as it is rolled out.”
The wider Budget also contains measures intended to support existing businesses, including an increase in the rateable value threshold for 100% Small Business Rates Relief to £18,000 for qualifying retail, hospitality and leisure properties in England from April 2027.
Eligible energy-intensive manufacturers will also be able to benefit from electricity bill reductions of up to 25% under the British Industrial Competitiveness Scheme, with support starting in April 2027 and including a back payment for 2026-27.
Mr Quigley, who is himself a small business owner, has also welcomed the Chancellor’s wider approach to supporting businesses.
He added:
“As a small business owner myself, I know first-hand the impact that decisions taken at the Budget can have on businesses large and small. It has been great to engage with the Treasury throughout this process, and I genuinely believe that in John Healey we have a Chancellor who is determined to champion entrepreneurship, back enterprise and support the businesses that drive growth in our economy.”
Further details of the Young Entrepreneurs Allowance, including eligibility requirements and how applications will be assessed, have yet to be announced.
Mr Quigley has said he intends to continue working with ministers, local employers and young people as the scheme is developed.
