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Early Years: Business rates are crippling nurseries

Up to 80m in business rates is being "sucked out" of the childcare sector, according to the chief executive of the National Day Nurseries Association.

Rosemary Murphy called on the Government to recategorise nurseries so they could escape potentially prohibitive rates paid by other businesses.

Rates have shot up by as much as 140 per cent in some areas, she said, leaving cash-strapped nurseries with crippling bills.

She said: "I think we should recognise day nurseries are not like most private businesses. They meet a public need and have to meet national standards. You can't compare them to Tesco."

Sector insiders expect the Government's 10-year plan for childcare to include concessions on business rates for private nurseries.

There are also indications that the Government is looking at private finance initiative-style models to get private-sector providers into disadvantaged areas.

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