
The letter says, ‘Business rates were an important issue raised to us by early years settings and practitioners [during the Committee’s inquiry].
‘Many childcare businesses pointed out that the size of their premises was not of choice but of meeting regulatory standards required by Government and Ofsted guidelines. They therefore had to pay more in business rates not as a result of a commercial decision to expand but as a result of meeting the space standards set by public bodies.
‘We were also informed of the effect of VAT on PVI settings, with many expressing how VAT charges drive up costs, and called for reform. Worcestershire Independent Providers told us that VAT charges had prevented them from moving ahead with a planned property extension. Little Faces Childcare argued that full relief from VAT would allow providers to pass on savings to parents.
Register now to continue reading
Thank you for visiting Nursery World and making use of our archive of more than 35,000 expert features, subject guides, case studies and policy updates. Why not register today and enjoy the following great benefits:
What's included
-
Free access to 4 subscriber-only articles per month
-
Unlimited access to news and opinion
-
Email newsletter providing activity ideas, best practice and breaking news
Already have an account? Sign in here