Parents face nursery charge blow as business rates soar

Published on Wednesday 28 April 2010 10:38

THOUSANDS of parents in Edinburgh are set for a big increase in nursery charges after the owners were hit by soaring business rates.

Private nurseries across the Capital are expected to hike up charges within months after many saw their annual rates bill more than double.

One nursery owner said they could add 2 to the cost of a 17 half-day session, while others admitted they would look at increasing charges to cope with increases of up to 323 per cent.

The move would hit the parents of around 3,000 children who attend private nurseries in Edinburgh.

The council-appointed board which sets the rates was also accused of "discrimination" against private nursery owners after it emerged that council-run nurseries would see a far smaller increase in their rates.

A study by the Evening News found that the city council's 17 nurseries saw business rates rise by an average of 34 per cent, while a sample of 15 of the city's private-run nurseries saw an average rise of 98 per cent.

It is not known exactly why private nurseries have seen a bigger rise, although assessors said they carried out a "revised scheme of valuation".

Little Flyers' Ingliston Road nursery will be charged 2,808 this year – 154 per cent more than last year.

Sharon Fairlie, who runs Little Flyers, said: "We will appeal but if we don't win we will have to pass it on to parents.

"I'm doing my normal yearly increase just now but I'm telling parents that I might need to review it in six months.

"I'm going to have to suffer this increase just now and probably go into an overdraft I've not used in years just to get through this. If I don't win an appeal I will have to tell parents 'I'm sorry but I'll have to pass this on'.

"This has happened with no warning at all.

"When I bought my business I looked at my mortgage, fees and whatever else. You expect rates to fluctuate slightly but not to this amount."

She said that, if her appeal fails, the increase is likely to be "at least 1-2" for a 17.75 half-day session.

She added: "I've spoken to other nurseries and we're all the same but it seems to only be private nurseries, not the council-run ones."

Jackie Glasgow said her Leaps and Bounds Nursery on Drum Brae North has seen rates rise by 83 per cent to 5,983.

She said: "It is a total joke and discriminates against two different groups providing a service in the same sector.

"It is going to put a lot of people out of business.

"You have to think about how you cover these costs and what the fees are – that will affect the community that uses the nursery as well."

In Edinburgh, around 40 per cent of all nursery children attend private nurseries. The city council currently contributes 1,550 towards the annual cost of sending children to private nurseries.

Michael Dixon, chairman of the Edinburgh branch of the Federation of Small Businesses, said: "A big increase in rates for any business presents the dilemma of either absorbing the cost or passing it on to customers.

"There are businesses that have been shocked and surprised by some of the increases."

The Lothian Joint Valuation Board assessor Joan Hewton said that an analysis of rental and cost data for nurseries in Edinburgh led to a "revised scheme of valuation" for nurseries.