Government may introduce student-loan style young entrepreneur funding

David Cameron has said the government is considering introducing a student-loan style system which provides funding to young people to start a business. 

The prime minister said the idea, first put forward by Sir Richard Branson as part of the Virgin Media Pioneers Control Shift campaign, is "brilliant".

He made the comment on Thursday morning during a 'PM Direct' event at the UK headquarters of accounting software company Intuit.

Questioned about support for young entrepreneurs by Zoe Jackson, founder of performing arts business Living the Dream, Cameron said: "There's a very good idea in there that Richard Branson has come up with and others have been looking at, which is that, okay, we are providing loans for students to go to university - why not look at something similar for people who have got a great business idea and want to get on and start that business?

"I think this is a brilliant idea and we are looking very closely at it. We might be announcing something like this later on."

Students are currently able to access loans of up to £9,000 a year to cover tuition fees and £7,675 for maintenance. Interest rates are low compared to other loan options.