However, there are proposed changes to government funded places which could impact on trading, depending on the fees being charged.
The Barclay Review of Business Rates in Scotland was published in August 2017 with a number of recommendations plus a timeline for implementation of the new proposals.
The recommendations have been broadly welcomed by the Scottish property sector.
One of the main recommendations of the Review, subsequently confirmed by Scottish Government Finance Secretary Derek Mackay, is that nurseries will be fully exempt from business rates with effect from 1 April 2018.
Further details can be found at:
http://www.bbc.co.uk/news/uk-scotland-scotland-politics-41244487
Gary Walton, Director at Walton HPC, commented:
“This is clearly good news for the sector as potentially running costs will decrease and this in turn will have a positive impact on the bottom line profits and valuations.”
However, much will also depend on the actual legislation - which has still to be published - as the Review recommends that rates savings from this Relief be passed on to staff and families. Furthermore, the plan to almost double Government funded childcare from the current 16 hours by 2020 could have a negative impact
Mr Walton adds “whilst the new funding will help and sustain occupancies in the sector, this may impact on the potential fee income which nurseries can command for private places, particularly if they are charging more than the Council are willing to pay for the funded places. These nurseries may therefore see an impact on trading over the coming years.”
Clearly, it is important that you understand the impact these changes may have on the value of your business.
We have extensive experience in the sector and are actively involved in the market at this time, acting on sales and acquistions as well as having over fifity business rates clients.
We would be pleased to hear from you.