Lib Dem leader sets out three key principles of party’s economic policy: investment in infrastructure, backing enterprise and taking the long view

Entrepreneurs are natural liberals, Tim Farron will claim when he sets out the core principles of the Liberal Democrats’ economic policy in a keynote speech.

The party’s leader will attempt to carve out a distinctive space for the Lib Dems between the economic policies of the Conservatives and Labour before George Osborne’s comprehensive spending review due next Wednesday.

“The liberal spirit is the entrepreneurial spirit and entrepreneurs are natural liberals,” Farron will say on Thursday. “What does it mean to be an entrepreneur? It means believing that no one owes us a living, but nor should government get in the way of us making a living for ourselves – like liberals.

“It means, given the opportunity, believing we can make a difference through our own individual talents and vision – like liberals.”

In his speech at the Institute for Public Policy Research, Farron will say he wants his party to become the champions of “long-term, high-value” venture capital in the UK.

“British investors in British companies need to be able to move their money around more easily. That may mean, for example, allowing investors to keep more of the money they would receive upon exiting an investment, providing they move on to the next investment rather than taking their profits.”

The three key principles that will govern Lib Dem economic policy over the next five years will be investment in infrastructure, backing enterprise and “taking the long view”, Farron will say. “If you’ve got 0% interest rates then the sun is shining. Why don’t we fix the roof?” he will ask, referring to Osborne’s frequent promise to “fix the roof while the sun is shining”.

In October, the Liberal Democrats attempted to use their disproportionate strength in the House of Lords to block the government’s plans to cut £4.5bn from tax credits.

The party’s 112 peers tabled a fatal motion to the bill, but Labour declined to back it, instead voting through a motion that forced the government to delay implementation of the cuts until ministers produce a scheme for “full transitional protection”.

Farron will say: “I want to take this opportunity again to invite the Labour party to join us, because transitional protection is not enough. Transitional protection will not help new tax credit claimants – those who after April next year find part-time work and need some extra help – to make ends meet.

“Transitional protection won’t help those who, on taking up additional hours will only be able to keep seven pence in every extra pound they earn once tax credits and benefits are taken away.

“So I say to Labour: when we oppose the cuts to tax credits again, this time join us. With your support, and that of the many Conservative MPs who have also expressed concern, we can stop George Osborne’s tax credit cuts.”