If we were zero-rated, rather than exempt, this would make sustainability much more likely. Currently, we pay VAT on things such as furniture, resources and training. However, we don't charge it and nor can we claim it back, unlike maintained schools and nurseries. To do so, we would have to become VAT registered and pay 17.5 per cent of our income to the Government, which would make us unsustainable.
Parents, meanwhile, are going to be hit with the cut in tax credits, which help fund their children's nursery places. How can they be expected to then pay for what could be a substantial rise in nursery fees across the country?
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