The Chancellor Rishi Sunak has unveiled the Government’s spending plans in today’s Budget announcement.

In the annual statement, the Chancellor focused on giving more support to businesses and people who are struggling financially due to the Covid-19 pandemic.

In his opening remarks, the Chancellor stated that there had been ‘acute damage to the economy’, with more than 700,000 people losing their jobs and the economy shrinking by 10 per cent, which is the largest fall in centuries. He vowed, as he did last year, to ‘do whatever it takes’ to get through the crisis.

Furthermore, growth this year is projected to be lower due to the current lockdown, but in 2022 it hits 7.3 per cent, up from the previous 6.6 per cent forecast.

However, despite continued calls from the early years sector for more support, the Budget did not include any additional measures for the sector.

Purnima Tanuku OBE, chief executive of National Day Nurseries Association (NDNA), said:

‘The news that the Chancellor will not be subjecting nurseries to business rates at the end of this month will be a huge source of relief today. This will help nurseries in the short term who are struggling with low attendance levels and rising operating costs, but the relief really should be made permanent for these businesses. Business rates remain an unfair tax on space which nurseries give children to grow, learn and develop.

‘But with 58% of nurseries* telling us they may not make it to the end of the term, they clearly need urgent support now to plug the gap created by low attendance and higher costs. There were no specific measures for childcare settings to support them with these. Without more financial support we are likely to see more closures and ultimately, we risk there being insufficient childcare places for all children.

‘The Furlough Scheme has been a vital lifeline to childcare providers and also to parents but as demand increases the need for this in nurseries will reduce. We have previously seen a Job Retention Bonus in place to support employers at the end of the furlough scheme. Over 70% of the early years workforce have been furloughed at some point. They are skilled workers who are vital to children’s development and employers should be supported to retain them.

‘As people look at their workforce needs and consider the future, support for apprenticeships and trainee positions will help employers cover some of the costs and extra work involved in taking on these roles and developing future early years professionals and leaders.

‘Support for investment is welcome but many early years providers are focused on survival and sustainability for the coming months. The Chancellor has promised to do whatever it takes to protect businesses and jobs. Early years remains critical to children’s life chances as well as the wider economy for working families. ‘Whatever it takes’ would have included overturning the spring term funding decision which has hit settings’ funding as well as offering targeted financial support to help settings weather this storm.’

Commenting, Neil Leitch, Early Years Alliance Chief Executive, said:

‘Given the vital role early education and childcare providers will play in the UK’s short and long-term economy recovery, it is both disappointing and hugely frustrating that today’s Budget did not include any specific financial support packages for the early years.

‘While the extension of the business rates holiday will provide welcome relief to some providers, this is only one piece of a very complex financial puzzle, and there are many in the sector who will not benefit at all from today’s announcement.

‘With early years attendance levels still well below normal, and ongoing additional costs associated with coronavirus, urgent help is needed to ensure our vital sector can continue delivering quality care and education to the children and families that need it.

‘Limited financial support throughout this crisis, combined with years of sector underfunding, has already led to the unnecessary closure of nurseries, pre-schools and childminders across the country. Without urgent action, this trend will undoubtedly continue.

‘That is why, on top of emergency support during the pandemic, government must undertake a full review of early entitlement funding to ensure that the sector is able to remain sustainable in the long term.

‘Countless reports show that if the Treasury really wants to reduce long-term spending, investment in the early years sector is an investment that is proven to last a lifetime. I cannot understand why this government is so unwilling to accept that.’