According to analysis commissioned by the Press Association from business rent and rates specialists CVS, business rates will rise to £110.72m per year, adding up to a total property tax bill for nurseries and pre-schools over five years of £553.6m by 2022.
Before the revaluation, nurseries and pre-schools paid £87.56m last year between them, CVS said, meaning the sector will have to pay an extra £23.2m per year until 2022 to meet the extra costs.
A revaluation of business rates this April saw rateable values, the property values used to calculate tax bills, rise by 32 per cent for many nurseries, threatening their sustainability.
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