The Government has recently announced a new Youth Entrepreneur Scheme as part of the 2026 Budget, following proposals championed by Labour MP for Isle of Wight West, Richard Quigley, to expand opportunities for young people looking to start their own businesses.
Talks with the Chancellor
The announcement follows a series of discussions between Richard and the Chancellor, John Healey MP, during which Richard made the case for greater support for young people seeking to start and grow their own businesses.
Earlier last week, Richard visited Number 11 Downing Street, the official residence of the Chancellor of the Exchequer, to discuss the scheme. During the meeting, the Chancellor praised Richard’s sustained advocacy for young people and his work to expand opportunities for the next generation.
What the scheme offers
The new scheme aims to support aspiring young entrepreneurs by helping them overcome barriers to starting a business and providing them with the tools and opportunities needed to succeed.
The scheme will include a Young Entrepreneurs Allowance pilot in England providing successful applicants with support towards their living costs during the first year of their business.
The Chancellor has also announced a new Founders’ Relief, which will offer eligible founders and early investors in high-growth innovative companies a reduced 10% rate of Capital Gains Tax on up to £10 million of lifetime gains.
Island skills summit
Earlier this October, Richard Quigley MP’s office hosted its second annual Skills and Growth Summit, bringing together Island employers, education and training providers, and young people to discuss how they can work together to create more pathways into employment and encourage greater employer engagement with work experience opportunities, helping young people take their first steps onto the career ladder.
Quigley: A real commitment to the next generation
Richard Quigley MP celebrated the announcement saying,
“This 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.”
Richard praised the Chancellor’s willingness to engage with businesses throughout the Budget process and said that, while balancing the nation’s finances is never easy, this Budget demonstrates that Labour is on the side of both working people and enterprise:
“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.”
Support for existing businesses
Alongside the new Youth Entrepreneur Scheme, the Budget provides practical support for existing businesses by increasing business rates relief to £18,000 and offering eligible firms a 25% reduction in energy costs, with the support backdated to help businesses facing immediate pressures.
Further details on the scheme are expected in the coming months, with Richard continuing to work with ministers, local employers and young people to help shape its successful implementation.
News shared by the office of Richard Quigley MP. Ed
