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Childcare providers may gain extended rate relief

Childcare providers in Wales may become eligible for 50 per cent more relief on business rates.

The Welsh Assembly Government is consulting on extending the smallbusiness rate relief scheme, which began in April 2007. New proposalswould mean that private childminders and daycare providers with arateable premise value of less than 12,000 see a reduction ofbetween 582 and 2,800 in 2008/09. The previous rateablepremise value for childcare businesses was set at 2,000.

Purnima Tanuku, chief executive of the National Day NurseriesAssociation, said, 'We are pleased to see that the Welsh AssemblyGovernment has recognised there is a need for increased business raterelief in the childcare sector, and is proposing an increase in both therateable value threshold and the relief available.

'However, in some areas nurseries will be above a rateable value of12,000 and we do question how many settings will be eligible.Some nurseries are being penalised for providing better and morespacious environments for children.'

She said the NDNA is continuing to urge the governments of England andScotland to consider similar proposals.

Further information:

Full details of the proposals are available athttp://new.wales.gov.uk/consultations. The closing date for responses is30 July 2008.