Make nurseries exempt from business rates to support the childcare sector

After owning nurseries for 29 years I have never experienced such damaging times for the sector with rising costs not being met by the funding rates available. Business Rates are a large drain on the sector and can mean the difference between nurseries being able to stay open and having to close.

Early years education has endured more than enough hardship, closures, job losses by the government letting us down by not supporting the industry in the way it should be. The Government is putting money into early years through funded hours – which doesn’t cover costs – but then takes this back through business rates. This system needs changing. Private and voluntary run nurseries are being slaughtered. It’s enough now.

In response to COVID-19, on 18 March the Chancellor announced that non-local authority providers of childcare in England will benefit from a business rates holiday for one year from 1 April.

Properties that will be eligible for the holiday will be those occupied by providers on Ofsted’s Early Years Register and are wholly or mainly used for the provision of the Early Years Foundation Stage.

Guidance for local authorities on the business rates holiday for nurseries is available online here: https://www.gov.uk/government/publications/business-rates-nursery-childcare-discount-2020-to-2021-coronavirus-response-local-authority-guidance

Any queries should be directed to the relevant local authority. Local authorities will be fully compensated for the cost of this measure. Business rates are devolved to Scotland, Wales and Northern Ireland.

HM Treasury