English nurseries want business rates scrapped after Wales becomes exempt

Wales is following in the footsteps of Scotland by making nurseries exempt from paying business rates and now nurseries in England are putting pressure on Westminster to do the same.

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The Welsh Government has announced nurseries in Wales will be exempt from next April. Scotland scrapped business rates for its nurseries in April this year.

Now nurseries in England are being urged to sign a petition to trigger a debate in Parliament over the issue, ahead of the Budget announcement in November.

The public have until the 5 October to sign the petition on the Government website, which was created by Victoria Whitty, manager of Hocus Pocus Day Nursery in Bolton.

Ms Whitty said: “I feel as a nursery manager if the business rates are cut then this money could go towards providing even better facilities for children and continue to offer the high quality care by highly qualified staff.

“The early years of a child's life are so important, yet it's getting even harder to ensure that children are getting what they need.”

Purnima Tanuku, chief executive of National Day Nurseries Association (NDNA), is backing the petition. She said: “Business rates were designed to tax shops, factories and warehouses based on the amount of space they had, not to burden nurseries.

“Although many nurseries are businesses, it is unfair to punish them for giving children space to grow, play, develop and learn, especially when there are mandatory regulations on indoor and outdoor space.

“Children are not commodities and it is about time that the Government understands that and makes childcare settings an exception. It has previously exempted pubs from paying this tax and what could be more worthy of attention than places where our young children start their learning journey?"

NDNA claims that the average rate increase was 24 per cent when properties were revalued in 2017 with some reporting increases as great as 200 per cent. In 2017 the average bill reported by nurseries was £10,778 a year.

Ms Tanuku added: “In persisting with this unfair tax on nurseries, the Government is pushing up the cost of childcare for parents. As their shortfalls increase, nurseries have no choice but to pass this onto parents in the form of higher hourly rates for younger children or those wishing to purchase additional hours."

Children's minister for Wales, Huw Irranca-Davies, explained why the Welsh Government has followed the route taken by Scotland. He said: "The childcare sector has told us that a total exemption from non-domestic rates would make a real difference to their business confidence. We've listened and taken action.

“By providing enhanced support for the childcare sector, we will further improve access to childcare places, supporting working families across Wales and make it easier for people to take up and retain jobs.”

The Welsh Government is currently rolling out 30 hours of 'free' childcare for working parents of three- and four-year-olds across the whole of Wales by 2020.

Cabinet secretary for finance, Mark Drakeford and Mr Irranca-Davies announced the business rates relief at Plantos Day Nursery in Cardiff.

Its owner Lowri Mifsud, said: “The childcare sector continues to face challenges and uncertainties. I await to see how the childcare offer will impact on childcare providers. It is crucial that childcare settings are able to provide affordable, high-quality childcare to parents.

“Many nurseries are struggling financially, hit hard by a mix of rising operating costs and staffing costs.”

The exemption will provide around £7.5m of additional support to childcare providers and will be reviewed every three years.

The National Day Nurseries Association (NDNA) said the move would be a significant help for nurseries and for the sector’s sustainability.

Nurseries in England wishing to sign the petition click here