Nursery sector reaction to Minister’s small business rates relief announcement
Making small business rates relief a permanent fixture for registered childcare premises across Wales will make a big difference to their sustainability, says National Day Nurseries Association (NDNA) Cymru.
Minister for Children and Social Care Dawn Bowden made the announcement that they will be making the 100% small business rates relief for registered childcare premises permanent on a visit to Daisy Day Nursery in Cardiff this morning. This has been available on a temporary basis since 2019.
Research that NDNA Cymru carried out earlier this year showed that 43% of nurseries who responded would have had to close their businesses if business rates had been reinstated.
Purnima Tanuku OBE, Chief Executive of NDNA said: “Followinglobbying from NDNA Cymru and other Cwlwm partners, we are delighted that the Welsh Government will continue with this rates relief for nurseries on a permanent basis.
“Childcare providers across Wales have been struggling with rising delivery costs and low funding rates for three and four-year-old places. We have seen more and more nursery closures this year which is a huge concern.
“In our research earlier this year, we discovered that 91% of nurseries expected to make a loss or break even this year. This is hugely worrying and something we are working closely with the Welsh Government to try to turn around. Removing the burden of business rates is a great start. In making this decision, the Welsh Government is recognising the value of supporting the early years sector.
“We are also looking forward to the results of their review into the Childcare Offer for Wales funding rate. We know that the Welsh Government understands and recognises the unique position of childcare businesses and the excellent work their staff do in supporting and educating our youngest children.”
NDNA’s research into business rates also revealed that 67% of nurseries would have to increase their fees to parents if rates were reinstated and 37% were concerned about their quality of provision.
Abeer Bafaqih, Managing Director of Daisy Day Nursery said: “We are overjoyed to learn that the Welsh Government have carefully reviewed the positions that childcare providers are in and made the decision to extend the relief of business rates.
“This decision marks a significant step to taking our sector and the challenges it faces seriously which, with NDNA in our corner, we are confident the Welsh Government will continue to do.
“At a time when families are already stretching their income, we are grateful that the relief means we will be able to continue to offer a reasonable fee structure to them.”
- Wales
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