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Keeping our money

Ross Midgley's feature (Special Report, 12 October) suggests that presenting prices in a different way might help some settings avoid problems with the Code of Practice. Concerns are also raised about councils not passing on all of the funding they receive for children. This raises sustainability issues for many voluntary playgroups and pre-schools. The action of withholding money is wrong as a matter of principle.

Concerns are also raised about councils not passing on all of the funding they receive for children. This raises sustainability issues for many voluntary playgroups and pre-schools. The action of withholding money is wrong as a matter of principle.

Money from the PVI sectors retained by the council can be used to give increased funding to maintained settings, increasing the threat to the PVI sector. It ensures that we will never be allowed to compete on a level playing field.

In Plymouth, the council is retaining between 12 and 13 per cent of PVI funding - over 7,000 for our nursery last term. This amounts to nearly 1m in Plymouth per year. Nationally, the total amount retained must be hundreds of millions. The PVI sector is rightly unhappy.

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