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Between 2008 and 2010, demand for nursery places fell by just over 6 per cent, due to the recession and people cutting back on non-essential services. The market remained weak post-recession as household spending grew only marginally in 2010, and unemployment was at a high level.
Supply mirrored demand, as the total number of UK nursery places fell by an estimated 6.5 per cent, caused by a drop in nursery stock as the number of operating nurseries decreased by an estimated 7.3 per cent between 2008 and 2010, equivalent to a net loss of 1,150 sites.
The report says that although nursery closures peaked in 2009, a weak economy post-recession, and the start of large scale public sector cuts, contributed to a further significant loss of settings.
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