Shock rise in VAT could force up nursery fees

Purnima Tanuku, chief executive of the National Day Nurseries Association, said that the VAT rise next January, from 17.5 per cent to 20 per cent, announced in the Chancellor’s Budget will impact on the ability of nurseries to invest in their settings and put pressure on parental fees.

She added, ‘NDNA will be looking at the business support mentioned in the Budget, and it is essential that nurseries are able to access this. Nurseries play a vital role in supporting families, and in enabling parents to work and make a contribution to economic recovery.’

Neil Leitch, acting chief executive of the Pre-School Learning Alliance, said, ‘The impact of increased VAT for the early years sector is nothing more than an additional 2.5 per cent tax.  At the moment, suppliers are exempt, so we would call on the Government to either zero-rate or allow organisations to reclaim their VAT.’

Sian Lewis-Evans, owner of Gingerbread Day Nurseries in Stoke Hammond, Buckinghamshire, who launched a campaign last year calling for nurseries to be able to register as zero-rated, pledged to restart her campaign in light of the VAT increase.