What is it about the governments attitude in this country to just handing over our cash to anyone who just asks for it? Well anyone in certain target groups anyway, if the likes of you or I asked for money we’d probably not get very far unlike ‘Stabby McChav’ and his brood who know how to play the system far far better than those charged with running it.
What we have is another Cameron ‘great idea’ where our cash is to be handed over to young people in the form of ‘startup loans’
An £82m loan scheme for young people wanting to create a business is being launched by PM David Cameron.
People aged between 18 and 24 can apply for funds, expected to typically be about £2,500, from StartUp Loans.
Mr Cameron said he hopes the initiative could lead to 30,000 more start-ups and give a boost to economic growth.
The loans must be repaid within five years, and interest will be charged at the level of the Retail Prices Index plus 3%.
Mr Cameron said he wanted young people to have the confidence and support to turn “that spark of an idea into the next global brand”.
It comes as an enterprise review says the UK would have 900,000 more businesses if it had the same rate of entrepreneurship as the US.
The review, by former Conservative minister Lord Young of Graffham, said that “many don’t realise the opportunities that enterprise offers”.
Do I have a problem with government wanting to encourage new businesses? No, what I do have a problem with is the government using taxpayers cash as for loans, that’s really the job of banks who probably have a sounder grasp of risk than the government or even members of the ‘Dragons den’ who are being asked to run it. Statistically seven out of ten businesses survive at least two years and 51 percent survive at least five years and those often than not run by adults with a sound grasp of the risks involved financed by banks. So you’ll forgive me my belief that the chances of getting value for money out of the scheme are pretty low. Worse, like the student loans many of the candidates will be saddled with already this scheme will add to their misery, even if they can make a success of it, they’ll still be struggling with debt anyway and the government are not helping.
What the government should be doing is creating an environment where it’s easy to start up a business with low taxation and few regulations (red tape) Of course we’d have to leave the EU to do that, so it’s a non starter.
So what do they do? They’re going to offer young people taxpayer cash to set up businesses in a recession, young people who are possibly already up to their ears in debt anyway.
For the life of me I cannot see this working, I hope I’m wrong, but I’m rarely wrong on anything the government spends our money on…