Nurseries and pre-schools in Wales have been exempt from business rates on a temporary basis since 2019. However, there were concerns among the sector that rates would be reinstated, impacting the financial stability of settings.
Research by National Day Nurseries Association (NDNA) Cymru, carried out earlier this year, found that 43 per cent of nurseries who responded would have to close their businesses if business rates had been reinstated.
Purnima Tanuku, chief executive of NDNA, said, ‘Following lobbying from NDNA Cymru and other Cwlwm partners [a consortium of five childcare and play 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 per cent of nurseries expected to make a loss or break even this year. 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.’
Abeer Bafaqih, managing director of Daisy Day Nursery in Cardiff, where the minister for children and social care made the announcement on business rates, 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.
‘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.’
Early Years Wales said the support will come as a huge relief to its members, who have coped with the ‘significant rise’ in the cost of living
Chief executive David Goodger added, ‘We are looking forward to continuing to work with the Welsh Government voicing the concerns of the childcare sector, making the case for further support of this nature to enable more children across our nation to access the full range of benefits high quality childcare provides.’
