The minister for children and social care, Dawn Bowden, has announced the Welsh Government is making the 100 per cent small business rates relief for registered childcare settings permanent.
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.’
