We operate a small 27-place nursery in an area of deprivation, and face the prospect of having not one but two Neighbourhood Nurseries open within half a mile either side of our setting, offering an additional 120 places. If they are able to offer higher pay to staff and better rates to parents, pay no VAT, and have either nil or reduced business rates, how can we possibly compete?
The NDNA should be looking more closely at the issue of unfair competition.
If these Neighbourhood Nurseries were to put us out of business then surely, under European competition law, this would be classed as anti-competitive. If Sure Start was British Airways and we were EasyJet or Ryanair, the unfair trading situation would never be allowed to materialise. Where do private providers stand in a situation like this? Do we have any protection?
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