If we were zero-rated, rather than exempt, this would make sustainability much more likely. Currently, we pay VAT on things such as furniture, resources and training. However, we don't charge it and nor can we claim it back, unlike maintained schools and nurseries. To do so, we would have to become VAT registered and pay 17.5 per cent of our income to the Government, which would make us unsustainable.
Parents, meanwhile, are going to be hit with the cut in tax credits, which help fund their children's nursery places. How can they be expected to then pay for what could be a substantial rise in nursery fees across the country?
The VAT increase will leave nurseries unable to invest as they currently do in staff training and retention, resources and consumable items. The fact that the rise will also coincide with the 5p expected increase in fuel prices means that rates, utilities and deliveries are also going to increase.
The money that we would save in being zero-rated would impact directly on the quality of service that we provide for children and their parents. Imagine having extra money every month to spend on new resources or send someone off on training that you weren't able to do before. That is exactly what we would be able to do! Each setting is different, but every single one in the country would benefit, even if it were only £10 per month.
This isn't about nurseries making a profit, but about children receiving a quality of care and education that shouldn't be compromised by funds. My petition, if successful, will enable all settings to do so. You can sign it at www.ipetitions.com/petitions/zeroratevat.
