!['Setting in areas of deprivation will fare the worst'.](/media/ydimu33o/arun-kanwar-copy.jpg?width=1002&height=668&bgcolor=White&v=1da6135b315eb10)
We head into 2023 with significant – but not unexpected – disappointment from the chancellor’s budget regarding support for the early years sector. There has been nothing for the sector on VAT exemption or business rates, and whilst there were subsequently announcements (after the budget) on the increase in funding rate they continue to fall short of the true cost of delivery. This is against the backdrop of another significant increase in the national living wage and continued cost inflation.
Schools fared better in the Budget, but childcare wasn’t the only sector which was overlooked – further education also received limited support. Longer term, FE colleges may fare better in terms of Government spending as they officially return to the public sector, but as nurseries are still predominantly run by private operators, there is a danger that they will continue to be ignored for ‘as long as possible’.
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