In its response to a report by the committee, published as part of its inquiry into support for childcare the early years, the Department for Education dismiss a recommendation that business rates should be scrapped for childcare settings, and that they should be zero-rated for VAT on their business purchases.
Ministers said they had “frozen business rates for the next five years and that rate relief schemes already provide discounts to childcare providers and others”.
They added: “There are no plans to alter terms for VAT.”
Government has also rejected the call for a review of tax-free childcare, highlighting that the policy is controlled by the Treasury rather than DfE.
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