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Call for action on falling occupancy

Falling occupancy levels are threatening some private providers with extinction, prompting calls from the heads of two major nursery chains for the Government to ensure that spare capacity is used before new childcare places are created. Nord Anglia chief executive Andrew Fitzmaurice said it cost 15,000 to create a nursery place and added, 'If there is all this spare capacity why doesn't the Government just save that money and get local authorities to procure existing private and voluntary sector nursery places.'

Nord Anglia chief executive Andrew Fitzmaurice said it cost 15,000 to create a nursery place and added, 'If there is all this spare capacity why doesn't the Government just save that money and get local authorities to procure existing private and voluntary sector nursery places.'

The growing crisis facing private nurseries is typified by the plight of the Laurels Day Nursery in Barnsley, which has seen occupancy levels slump from 85 per cent to 50 per cent, leaving owner Linda Mills facing mounting financial losses.

She said the number of children coming to her neighbourhood nursery had declined because younger children were going into nursery classes in schools while she faced 'unfair' competition from heavily subsidised daycare set up by Sure Start and children's centres.

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