The Welsh government has made relief from small business rates permanent for the childcare sector.

Day nurseries have not paid business rates in Wales since 2019, due to the small business rates relief scheme. The move is estimated to save the sector £3.4 million annually.

Dawn Bowden, Minister for Children and Social Care, said: “Making business rates relief for registered childcare premises permanent will be a huge boost to the sector, providing stability and helping providers reinvest savings back into their business to continue delivering high quality, and affordable childcare.”

Bowden made the announcement on a visit to Daisy Day Nursery in Cardiff. Abeer Bafaqih, managing director of Daisy Day Nursery said: “We are overjoyed to learn that the Welsh Government have carefully reviewed the positions that childcare providers are in and made the decision to extend the relief of business rates. This decision marks a significant step to taking our sector and the challenges it faces seriously which, with NDNA in our corner, we are confident the Welsh Government will continue to do.”

Purnima Tanuku, chief executive of the National Day Nurseries Association (NDNA), said: “Following lobbying from NDNA Cymru and other Cwlwm partners, we are delighted that the Welsh Government will continue with this rates relief for nurseries on a permanent basis.

“Childcare providers across Wales have been struggling with rising delivery costs and low funding rates for three and four-year-old places. We have seen more and more nursery closures this year which is a huge concern.”