Currently, any funding that nurseries receive is considered income and is taxed accordingly.
Rachel Jones, managing director of Fit 'n' Fun Kids in Cornwall, claims that if the Government ring-fenced the business tax that private nurseries and out-of-school clubs are charged on funding for threeand four-year-old places, and training, apprenticeships and graduate placements, then they could put the money back into their provision and reduce fees for parents.
Fit 'n' Fun Kids is registered as a limited company, which means that the setting is taxed on any profits it makes.
Ms Jones argues that not only would the ring-fencing of taxation help parents with childcare costs and lift barriers to them returning to work, it would also help nurseries facing the same challenges in the current economic climate.
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