Falling rolls and rising debt in Scotland's nurseries

Over half of respondents to a survey of the organisation's member and non-member nurseries also reported an increase in business rates, with the highest increase cited 410 per cent and the lowest 5 per cent.

The insight report on the nursery sector also suggests that the economic climate is having a more negative impact on nurseries than last year, with occupancy down from 2009 levels. One in five survey respondents said that occupancy was between 81 and 90 per cent this year, in contrast with 2009 when one in three said so.

Nurseries said that occupancy and sustainability were the biggest challenges they faced.

Levels of pre-school funding continue to be an issue for nurseries. Seventy-two per cent said that funding does not cover the cost of delivery and 62 per cent had received no change to their funding levels since 2009.

Nurseries also said they were increasingly being asked by local authorities to tender for pre-school places.

Just under half of respondents said that more than 80 per cent of their workforce was registered with the Scottish Social Services Council, exceeding the current requirement, which is for only managers and lead practitioners to do so.

NDNA chief executive Purnima Tanuku said, 'NDNA Scotland's 2010 research shows that although nurseries are performing well, they are starting to feel the impact of the current economic climate. This is an area that will need to be monitored, given the sector's vital role in supporting a strong and sustainable economy. NDNA is especially concerned by the evidence around stagnant pre-school funding and rising business rates, and we will be discussing the results of this with relevant organisations, including the Scottish government.'