Question to the Department for Education:

To ask the Secretary of State for Education, whether she plans to review the upper threshold for small business rates relief for early years providers.

The government is committed to ensuring children have the best start in life, and has set a target of a record number of children starting school ready to learn as part of the government’s Plan for Change.

Local authorities are responsible for ensuring that the provision of childcare is sufficient to meet the requirements of parents in their area. They are required to report annually to elected council members on how they are meeting this duty, and to make this report available to parents. The department regularly discusses sufficiency with each local authority in England, and where there are challenges, the necessary actions to take and provision of support via our childcare sufficiency support contract is explored. We do not currently have any reports of sufficiency issues in any local authority.

The latest available figures on early years providers show that, between 31 August and 31 December 2024, 1,275 providers joined Ofsted’s Early Years Register and 1,581 providers left the Register. In the same period, the number of registered places grew slightly from 1,275,264 to 1,277,932.

His Majesty's Treasury has been working on a fundamental review of business rates in the UK. The latest update indicates that the final report of this review will be published in autumn 2025. This review aims to reduce the overall burden on businesses, improve the current business rates system and consider more fundamental changes in the medium-to-long term. Childcare providers are being considered as part of this, and the review acknowledges the unique challenges faced by nurseries and other childcare providers.