Budding entrepreneurs to get £2600 'start up allowance' under Lib Dems

The fund, designed to boost the number of new small businesses, would see individuals receive up to £2,600 - equivalent to £100 a week.

The measure is one of several pro-enterprise policies that the party is expected to unveil today, including an expansion of the British Business Bank to make it easier for firms to borrow.

Lib Dem business spokesman Susan Kramer said the proposals are proof that the party is "on the side of entrepreneurs".

"Entrepreneurs are the lifeblood of a thriving economy but I know from my own time in business, the early months can be really tough," she said.

"It takes courage to set up a business... This will really help get small businesses off the ground and let the economy grow."

Leader Tim Farron added: "While the Conservatives focus on giving tax cuts to giant corporations, our focus is on small businesses seeking to grow.

"The Conservatives have lost the right to call themselves the party of business. The Liberal Democrats are now that party."

The party will also announce plans today to spend an additional £300m a year on policing over the next Parliament.

Forces across England have seen their reduced by around 20 percent since 2010, which HMIC recently warned has left policing in a “potentially perilous state”.

Labour have already pledged funding for an extra 10,000 police officers, paid for by an increase in capital gains tax.

Conservative ministers have previously claimed they are providing "fair and stable funding for the police".