Figures show for the first time on record a drop in nursery capacity, which was down 1 per cent.
Revised statistics published in Laing & Buisson's new report Children's Nurseries 2009 show that the UK nursery market grew by only 4 per cent in 2008, down by nearly half the figure quoted in preliminary results released at Laing & Buisson's annual nurseries conference in London last month.
The original figures released at the conference said the nursery sector was worth £4.1bn, with a 7.8 per cent year-on increase (News, 18 March).
The new report puts the value of the day nursery market in the UK last year at £3.9 bn.
Economist and author of the report Philip Blackburn said the figures had been revised to take into account the 'almost certain drop in provision between August and December,' using Ofsted data published at the end of March 2009.
Statistics on the number of registered childcare providers and places in England showed that there were now at least 8,181 fewer providers than at the end of August (News, 26 March).
'Children's centre openings almost stalled in '08, so there wasn't that drive in new development, and the private sector has had no lending from banks,' said Mr Blackburn.
'There has been a clear increase in the number of closures as many nursery businesses struggled to service debts during difficult economic times, and maintain occupancy at healthy levels.'
Mr Blackburn predicted that the recession will 'push net capacity further down, as a continued high level of closures isn't matched by new developments, and demand will be further pressurised by job losses, shrinking average household incomes and employer cutbacks.'
- Further information: 'Children's Nurseries 2009' is available at www.laingbuisson.co.uk, price £595
