Features

Market View - Is Austerity Coming?

Arun Kanwar, partner at Cairneagle Partners, discusses how the political and economic situation may affect the sector

Since my last column a few short weeks ago, the sands have shifted once again and we have a new PM in place, as well as a new Education Secretary and a new children's minister.

At the time of writing, we are awaiting the implication of this Government and of the Chancellor's Budget on the early years sector. However, it feels that we are entering a period of short-term ‘stability’ of policy relative to the political flip-flopping we have experienced over the last six months. Stability of course doesn't necessarily mean ‘good’, as we are unlikely to have any meaningful reversion of the increasing gulf between funded and private rates, and there is more than a whiff of austerity in the air.

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