Nurseries: Business Rates

(asked on 29th August 2025) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of business rates on (a) private, (b) voluntary and (c) independent nurseries.


Answered by
Dan Tomlinson Portrait
Dan Tomlinson
Exchequer Secretary (HM Treasury)
This question was answered on 9th September 2025

In April 2025, the Government removed eligibility of private schools in England for business rates charitable rate relief. Schools that satisfy the definition of a private school have lost entitlement to charitable rate relief entirely. This definition may include private schools with some nursery classes, which, despite the presence of some nursery provision will still be, by their nature, private schools.

Standalone nursery schools, where they have their own business rates assessments, were excluded from the legislation and, where applicable, have retained their charitable rate relief. This approach best ensures consistency with the underlying policy intent.

Analysis on the expected impact of this policy can be found online here: https://www.gov.uk/government/publications/removal-of-eligibility-of-private-schools-for-business-rates-charitable-relief/removal-of-eligibility-of-private-schools-for-business-rates-charitable-relief

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