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Scrap business rates to help struggling nurseries, government urged

2 mins read Early Years
The requirement for nurseries to pay business rates should be scrapped in order to help them cope with the financial impact of delivering the government's 30 hours childcare offer, a charity representing nurseries has said.

National Day Nurseries Association (NDNA) has written to Chancellor of the Exchequer Philip Hammond and the Education Secretary Damian Hinds calling for them to take the step following the announcement last week that the Welsh government will give 100 per cent of business rates relief to nurseries, similar to existing arrangements in Scotland.

A petition to scrap business rates and VAT for nurseries in England, set up by nursery manager Victoria Whitty of Hocus Pocus Day Nursery in Bolton, has been signed by more than 10,830 people.
 
NDNA said most private, voluntary and independent nurseries, which offer 85 per cent of the total childcare and early education places in England, are small businesses struggling to survive because they are making losses on the places they are delivering as part of the government's 30 hours policy.

It said that, at the same time, the government mandates that they operate within strict regulations regarding both indoor and outdoor space for children while implementing a tax that punishes those offering more space.
 
Research by NDNA found that the average business rates bill is almost £11,000, with 52 per cent of NDNA members saying their bill has increased in the last year.

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