Start-up loan age limit raised

A Government loans scheme to help young entrepreneurs get business ideas of the ground is to be extended to the over-30s.

Lifting the age cap for Start-Up Loans is one of several reforms in a new report by David Cameron's enterprise adviser Lord Young which the The Prime Minister said would help "fire up business growth" in the UK.

Other proposals which have been accepted by ministers include making it easier for small businesses to bid for £230 billion a year of public sector contracts and a £30 million voucher scheme to encourage firms to get expansion advice.

The age-limit for the Dragons Den-style loans, which are only available in England and being delivered through charities such as The Prince's Trust, was only raised from 24 to 30 earlier this year .

Those whose business plans are deemed "robust" typically receive £2,500 which can be repaid over five years at a relatively low rate of interest.

Business groups broadly welcomed the package of measures, which will remove the need for bidders to complete complex pre-qualification questionnaires when bidding for public sector contracts worth under £200,000 and "simplify and standardise" procurement across the board.

Under the Growth Voucher programme, firms will be able to pay for outside expertise on issues such as taking on new staff, marketing, financial management and online services - something fewer than half do despite evidence it generally aids growth, the report said.

Funding for the vouchers was announced in the Budget and private firms are being sought to operate the scheme. Lord Young's report also heralds action to increase the role of business schools in encouraging start-ups and to ensure Government schemes are "properly resourced and targeted at the small firms that need them most".

Number 10 said it accepted the Government had failed to sufficiently publicise existing help and how to access it. Former Conservative minister Lord Young said: "Growing our smallest businesses would transform our economy - they are the vital 95%.

"If just half of the UK's micro businesses took on an additional member of staff, unemployment would be reduced to almost zero. We need to raise the aspirations and confidence of these businesses and give them the tools to grow."