New Woods Children's Centre, which opened in April last year, was built according to Government funding rules for round one children's centres in the grounds of Healdswood Infant School in Skegby, Nottinghamshire, which already has a nursery for three- and four-year-olds.
Under the requirements for round one, the daycare setting had to be physically attached to the school nursery but the free entitlement to nursery education would only go to the school.
A spokesman for Nottinghamshire County Council said, 'We lobbied central Government to say that it would be very difficult for a daycare provider to make the provision economically viable under the circumstances. We showed several providers around, but they all decided that they could not make the sums add up with the NEG element going to the school, so declined to put in a tender bid.'
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