In 2017 the Scottish government decided to exempt nurseries from business rate tax from the following year.
Derek Makay, who is the Holyrood finance secretary, said that “Scotland has always been a leader in education and childcare, and this is the first relief of its kind anywhere in the UK.”
Getting rid of business rate tax is thought to have saved the nursery industry around £8 million each year.
This tax relief was eagerly welcomed by the early years sector and by Purnima Tanuku, who said “We congratulate the Scottish government for its progressive thinking regarding early years education.”
In 2018 the Welsh Government decided to follow Scotland and from April 2019 nurseries in wales have been exempt from business rates.
The Welsh finance secretary, Mark Drakeford, said the move “will help to create new childcare jobs and help to create new and maintain existing childcare places across Wales.”
The minister for children, Huw Irranca-Davies, who said “by providing enhanced support for the childcare sector, we will further improve access to childcare places, supporting working families across Wales and make it easier for people to take up and retain jobs.”
Do you think that nurseries in England would benefit from having the same business tax rates removed?
Do you think that it would make a big enough difference?
Yes I think nurseries in England should be exempt from paying Business rate asap. As many Early Years Nurseries are struggling with other taxes deductibles particularly small early years settings. And it will also encourage more services providers to open up.
Yes it would make a big difference for nurseries not to pay business rates I pay as much in business rates as I do for the lease on one of my nurseries its ridiculous, this with the set funding incomes and VAT is just another burdon on business who have a very low margin rate to begin with.
We are a struggling small nursery with no funds after expenses we are not able to replenish toys buy new tables etc so this would be a life saver for us