Rachel Reeves’ budget ‘a recipe for total disaster’ for nurseries, say Tories

Rachel Reeves’ budget is “a recipe for total disaster” with up to four in ten early years care providers expected to close their doors as a result, the Conservatives have claimed.

Shadow Education Minister Neil O’Brien has called on the Government to publish the impact of increased employers’ national insurance contributions on nurseries and sixth form colleges.

Education Secretary Bridget Phillipson said funding rates and the government’s plan for early years providers would be set out “in due course”.

In the House of Commons on Monday, Mr O’Brien said: “The Early Years Alliance is warning of a 20% increase in tuition fees for early years parents. This affects both nurseries and paid breakfast clubs.

“They say the budget will lead to total disaster, with four out of ten providers closing in the first few years, unless drastic action is taken.

“So, as a first step in avoiding this disaster, will the Minister now agree to publish estimates of how much this increase will cost early years providers? And if she doesn’t publish it, why not? Does this House not deserve to have this information? »

Ms Phillipson responded: “I take the concerns of early years providers very seriously, and we will set out the funding rates and approach we take in due course.

“However, what I would say to (Mr O’Brien) is that they are very keen to complain and criticize the measures that we have put forward in the budget, but the Leader of the Opposition herself- even declared that she would refuse to go back on this budget.

“They want all the benefits, the teachers, the breakfast clubs, the raising of standards, but they are just not prepared to make the tough decisions that need to be made.”

Mr O’Brien also said post-16 education providers were concerned about how much the increase announced in October’s budget would cost them.

He told MPs: “Staff at non-academic sixth form colleges are not being offered the same pay rise as staff at academyised colleges.

“Now it is understood that the amount of money is available for post-16 education, but universities have no idea whether this amount of money will be enough to offset the increase in national insurance or whether they will find, like the universities, that it is entirely swallowed up by the increase in national insurance.

“So will the minister now agree to publish how much the National Insurance increase will cost sixth form colleges, and if she doesn’t publish it, why on earth?

Education Minister Janet Daby responded: “I find it absolutely shocking that the opposition minister takes no responsibility for the many situations we find ourselves in, where this government has had to make decisions that are in the best interest of students and colleges, and we’re doing various assessments to try to make sure that we’re fixing the mess that we’ve inherited.

Elsewhere on education issues, former Conservative minister Sir Oliver Dowden accused the government of depriving Jewish children of a Jewish education, after a private school in his constituency announced it would close due to the government’s plan to impose VAT on tuition fees.

The Hertsmere MP said: “Over the weekend, Immanuel Prep in my constituency announced its closure, citing VAT on tuition fees and other damaging Labor policies.

“Does the Secretary of State share my concerns about the damage this will cause to Jewish children growing up in and around my constituency, by denying them access to a Jewish education that they richly deserve?

Education Minister Stephen Morgan responded: “The government’s budgetary legacy is so dire that we must make difficult but necessary decisions and make them quickly. Removing the VAT exemption from January is the right thing to do to ensure services are delivered to every child in our country.

Earlier in the session, Shadow Education Secretary Laura Trott called for the implementation of the Free Speech Act – legislation introduced by the Conservatives but which has since been suspended by the Labor government.

Ms Trott said: “Since the Secretary of State decided to suspend this legislation, gender critical women, among others, have racked up huge legal bills which have led some to remortgage their homes. »

She added: “Inaction has consequences, this delay causes harm. Will the Secretary of State accept this and implement the legislation?

Ms Phillipson replied: “I accept that academics are free to express a wide range of views, and these will be views that people will sometimes find difficult, but what is also important is to have applicable legislation.

“I’m afraid the legislation his party has put forward simply hasn’t done that.”