Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will extend business rates exemptions to nurseries delivering Government-funded childcare places, comparable to the exemptions recently announced for pubs and to those that apply to schools and academies.

Business rates are a broad-based tax on the value of non-domestic properties, including nurseries. At the Budget, the Government announced a £4.3 billion support package announced at the Budget to support ratepayers across all sectors seeing bill increases. As a result of the Budget package, over half of ratepayers will see no bill increases. This also means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

In recognition of the fact they are valued differently to some other sectors, and industry bodies have highlighted concerns with how costs are accounted for in this methodology, particularly during periods of high inflation, the Government is providing additional support to pubs.

More broadly, in 2026-27, we expect to provide over £9.5 billion for the early years entitlements. We are investing over £1 billion more compared to 2025-26 to deliver a full year of the expanded entitlements and an above inflation increase to funding rates.