Nursery vows to continue despite £40k funding loss

East Lothian Council pulled out of its partnership with Butterflies Nursery in Musselburgh months after a damning assessment was published.

It spells an uncertain future for the facility, and has angered parents who have vigorously defended its reputation since the reports were made public at the end of last year.

The timing of the decision – revealed to parents in a recent letter – has puzzled staff at the Stoneybank Terrace nursery.

Operations director Lyndsay Grant said: "We are all still in shock about this. We know the reports came out and while we didn't agree with much of what they said, we were willing to play ball and work with the recommendations.

"That's what we've been doing and then this letter came out of the blue."

In November, a Care Commission report found the nursery to be "unsatisfactory" in every area it was inspected on. A follow-up a month later found considerable improvements, but it was a January visit by Her Majesty's Inspectorate of Education – yet to be formally published – which is understood to have turned the screw on the nursery.

Ms Grant added: "We've not had a single parent take their child out of the nursery since the report came out, and they have been hugely supportive.

"40,000 is a big loss but we will fight on and make this work. We've been here a long time and won't give up because of this."

One parent, Judith Warnock, has written to the local authority to demand answers.

She said: "The children are happy, well cared for, educated and the parents of the children who attend can't all be wrong.

"The withdrawal of the partnership funding does not take into account the best interests of the children. This seems to have been lost in red tape and, dare I say it, a cost-cutting exercise."

However, the council said the organisation would need improved reports before the partnership could be revived.

A spokeswoman said: "The new arrangements make it clear that our partnership nurseries must meet HMIE and Care Commission standards.

"Butterflies Nursery does not currently meet the inspection grades that we require, nor has it fully implemented the improvement plan, as agreed, by March, after its last inspection.

"Should the nursery receive an improved inspection report with grades of 'adequate' or above in the future, they could apply to go back into partnership with East Lothian Council.

"We understand this decision may cause concern to parents, but our prime responsibility is the welfare of, and development opportunities for, children in our nursery provision."