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Exclusive - Minister says rates and VAT changes may be considered

Education secretary Michael Gove has mooted the possibility that changes to business rate relief and VAT for nurseries could be considered at the same time as plans being looked into for academies and free schools.

The issue was raised by nursery owner David Shaylor at a local Chamber of Commerce meeting in St Albans last week.

Mr Shaylor, who owns Munns Farm Day Nursery on the Hatfield House Estate, near Hertford, raised the issue of the high business rates with the education secretary, as well as nurseries' inability to claim back VAT, saying they play a key role in childcare costs.

Mr Shaylor told Nursery World, 'In reply, Michael Gove said that the suggestions made seemed sensible and timely as he was already having discussions with George Osborne over the same issue of VAT with free schools and academies. He added that it didn't make sense not to be trying to find a solution for all childcare providers at the same time.'

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