NDNA submits evidence to Treasury Select Committee’s business rates inquiry

NDNA has submitted detailed arguments to the Treasury Select Committee for its inquiry into the impact of business rates on businesses for scrapping business rates for nurseries in England.Treasury Select Committee logo

This includes evidence, costings and case studies.

NDNA’s similar campaigns in Scotland and Wales resulted in 100% rates relief for childcare businesses. 

Purnima Tanuku OBE, Chief Executive of NDNA said: “We have focused our argument on the fact that this tax was developed for warehouses, shops and factories and is unfair for nursery businesses. This is because these are places for children to grow, learn, explore and play. These nurseries should not be penalised for offering a comfortable, healthy environment and plenty of safe outdoor space for the children to
play in.

“As laid down by the EYFS framework, nurseries have to meet minimum space requirements.

“Our members tell us that the average bill is almost £11,000 with more than half seeing an increase in 2017 when properties were revalued.

“It also means that private nurseries are not operating on a level playing field with those from the maintained sector and schools which do not have to pay these rates.

“These additional costs have not been factored into the amount of money that the Government pays nurseries to deliver funded childcare places on their behalf to parents of eligible two, three and four-year-olds which for the vast majority has not gone up in the past few years.

“The importance of the childcare sector, alongside the specific requirements placed upon them through central regulation and control make them a special case for business rates relief. This has already been recognised in Scotland and Wales.

“Money saved by not having to pay business rates can be used to invest in the business in the form of staff training and in resources to support the quality of provision they can offer.

“It’s now time the Government looked properly at how they are treating nursery businesses and urgently review their policy on business rates.”

The full submission can be found here