Scottish nurseries win relief from business rates until 2023

The Nursery Rates Relief Scheme, which was initially due to end on 31 March 2021, has been extended until ‘at least’ June 2023.

During this time, qualifying day nurseries will continue to benefit from 100 per cent relief on non-domestic rates, which has been worth on average more than £12,000 to each nursery in 2020/21.

Extending the scheme will allow for a full evaluation of the impact of the day nursery relief on providers, parents and carers, which is a recommendation of the independent Barclay Review of non-domestic rates undertaken in 2017.

Children’s minister Maree Todd said, ‘Extending the Nursery Rates Relief Scheme will provide some welcome certainty to our day nurseries – especially at a time when many are feeling real financial pressures.

‘Our childcare sector plays a vital role in our economy, supporting children’s development and helping parents to access employment, education or training. We have seen the critical importance of this during the pandemic.’

She added, ‘We will shortly announce a new date for when all eligible children will be entitled to 1,140 hours of high quality care and learning – almost double the current statutory entitlement.

‘I’m very pleased that in addition to the measures we’ve already taken, this further step will provide more certainty for the sector, while ensuring the benefits of the scheme are being felt by families across Scotland.’

Purnima Tanuku OBE, chief executive of National Day Nurseries Scotland, said, ‘It’s really good news that the Scottish Government has recognised the pressure that the sector has been under as a result of the Coronavirus pandemic.

‘We have heard from our members how this relief can mean the difference between staying open and closing during these difficult times. It has also given nurseries the opportunity to invest in outdoor spaces as well as their staff and extra measures to keep children safe.

‘NDNA Scotland will continue to work with providers and the Scottish Government to show the positive impact this policy has on ELC providers and the children and families they support. This will be vital support for the sector as they continue to face a challenging period.’

The Nursery Rates Relief Scheme provides 100 per cent relief on non-domestic rates for premises used only as a day nursery or mainly as a day nursery. The scheme was introduced in April 2018 and an evaluation of the initial three-year scheme will be completed by June 2022.

The statutory expansion of funded early learning and childcare for eligible children from 600 to 1,140 hours was paused in April to give local authorities the flexibility to focus on responding to the COVID-19 pandemic. A new date for the statutory expansion to 1,140 hours will be announced shortly.