The FSB has called into question whether the Government has fullyconsidered the impact on the PVI sector which, it claims, is forcingsome nurseries out of business.
It sought legal opinion on the measures in the code because theGovernment did not carry out a Regulatory Impact Assessment when therevised code was published in April 2006.
The FSB has called on the Government to carry out a RIA and a smallfirms' impact test (News, 10 May).
The barrister's summary concluded, 'I retain doubts of whether the FSBwould succeed in an action for a judicial review of the code. However,there are good prospects for the FSB to demand a post-implementaryImpact Assessment (IA) into the implications of the code for PVInurseries.'
Colin Willman, chair of education and skills at the Federation of SmallBusinesses, described the implementation of the code as 'catastrophic'for private and voluntary nurseries throughout the country.
Mr Willman said the Government's changes to early years fundingannounced last month, which seek to address problems faced by the PVIsector, would be too late for many nurseries because they do not comeinto force until 2009 at the earliest.
'One business we know about is losing 15,000 a year,' hesaid.
He added, 'The Government is failing to recognise the true cost of thecode to private and voluntary nurseries. They should carry out an urgentreview of the growing hardship this is causing. The FSB feels that it iswrong to compel small businesses to subsidise Government socialpolicy.'
He said that following the legal review the FSB would be calling for ameeting with children's minister Beverley Hughes to discuss itsfindings.