UK Nurseries at Risk of Closing Under New Budget, Industry Warns
- Early years sector faces increased costs from staffing and tax
- Costs may be passed to parents or centers may close: experts
The new budget for childcare takes does not take into account the higher tax costs that childcare centers will have to shoulder.
Photographer: Maira Erlich/BloombergThis article is for subscribers only.
The UK government’s plans to expand access to childcare risks unraveling over higher taxes for employers, industry leaders said, as they warned that costs may be passed onto parents or providers could be forced to close.
The UK government will allocate £1.8 billion ($2.3 billion) to meet the costs of an expansion in free government-funded childcare, Chancellor Rachel Reeves said in Wednesday’s budget, confirming figures announced by the previous government.