Nursery World - Neighbourhood Nurseries under pressure in difficult year ahead

Day nursery businesses performed well during the past year with solid trading results, according to an analysis by corporate agents Christie & Co.

However, they warn that the next 12 months could see children's centres and neighbourhood nurseries struggling to survive.

Courteney Donaldson, Christie's director and head of childcare, said, 'These type of nurseries are likely to be more susceptible to pressures, including local demographic and economic challenges, local authority spending cuts and changes to tax credits, predominately due to the disadvantaged areas in which these nurseries are located.'

The impact of the Government's spending cuts, the increase in VAT and the rise in utility bills will also pile on the pressure, leading to more nurseries closing.

Other nurseries that could close are those that have relied heavily on subsidies and grants in the past, and those that have borrowed too much and cannot make debt repayments, as well as settings that are mainly used by public sector employees.

Register now to continue reading

Thank you for visiting Nursery World and making use of our archive of more than 35,000 expert features, subject guides, case studies and policy updates. Why not register today and enjoy the following great benefits:

What's included