Nurseries struggle to cope with 50% rate rise

CHILDCARE: Parents face hike in bills and providers say jobs could be at risk

Nursery bosses in Perthshire have warned that jobs could be lost and vital childcare thrown into chaos by a massive increase in business rates.

Hard-pressed parents are facing an unpalatable increase in bills as childcare providers fight to survive a huge 50% rise in costs.

The Honeypot Nursery, which provides childcare in Almondbank, Scone, Luncarty and for energy giant SSE in Perth is worried about the future.

Boss Kenneth Taylor said the increase would “impact on many families with young children in the Perth and Kinross area” and warned jobs could even be put at risk.

Murdo Fraser MSP said the challenges now being faced by Scottish nurseries were “scandalous” and warned the Scottish Government families would be left without childcare unless action is taken.

Childcare will become more expensive for hard pressed Perthshire families, the owner of one of the area’s biggest private nursery businesses has warned.

The industry has been warning for months about the potential impact of business rate revaluation upon private nursery firms.

Kenneth Taylor runs the Honeypot Nursery chain, which has branches in Almondbank, Luncarty and Scone and provides services at Scottish and Southern Energy in Perth.

He is facing an increase in business rates of up to 50% and believes that could, in a worst case scenario, put 50 jobs and local childcare at risk.

Mr Taylor said the rise was “unrealistic” and said they could impact on many families with young children.

“The recent increase in rates of almost 50% will put significant pressure on the nursery, as to cover these costs children’s fees will have to rise,” he said.

“This will put an unacceptable burden on already hard pushed parents to find the money for childcare.

“This seems to go against our Govern- ment which is always talking about free childcare and extended hours.

“This may be OK for local authority nurseries but for the private sector it spells disaster.”

Mr Taylor said the Honeypot Nursery at Almondbank faced a double disadvantage as it is affected by the council’s flood defence works. He said the major works, which will take around 18 weeks, have restricted access.

The Government has increased business rates, which are collected by local authorities, for the first time since 2010.

The new rateable values are based on the rental value of properties on April 1 2015.

Local authorities have flexibility to offer discounts to businesses.

Mid Scotland and Fife MSP Murdo Fraser said the increased costs being imposed on nursery businesses such as Honeypot were “scandalous”.

“The Scottish Government is well aware of the serious implications huge rates hikes will have on nurseries but so far has done precious little to help mitigate this.

“Nurseries like Honeypot in Perth provide a hugely valuable service and without their services many families would be left struggling to find childcare.

“The Scottish Government is fond of citing its record on free childcare, but here we have a nursery facing real challenges as a direct result of government policies. It is scandalous.”

This seems to go against our Government which is always talking about free childcare and extended hours