The proposals would see the introduction of a 50 per cent relief rate for childcare services. Currently the average relief rate for nurseries is 25 per cent.
Ministers are also considering raising the rateable value threshold for childcare providers from £2,000 to £12,000. This would mean more childcare providers would be eligible for business rate relief.
Purnima Tanuku, chief executive of the National Day Nurseries Association, said: "This is a positive move and recognises that nurseries are providing a highly valuable service to families and it will also help support the financial sustainability of settings."
But she warned that nurseries with lots of space for children to play in may miss out because they would not benefit from the increased threshold. This, she said, would lead to some nurseries being penalised for providing better and more spacious facilities.
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