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Nursery Discount

Coronavirus: Advice for Businesses

For an overview of what support and grants are available to business please see our Coronavirus advice page.

As an extraordinary response to Covid-19, the Government announced a 100% business rates Nursery Discount on 18 March 2020.

This relief will apply to hereditaments occupied by providers on Ofsted’s Early Years Register and wholly or mainly used for the provision of the Early Years Foundation Stage and which are subject to business rates in the year 2020-21. There will be no rateable value limit on the relief.

As this is a measure for 2020-21 only, the Government is not changing the legislation around the reliefs available to properties. Instead the Government will, in line with the eligibility criteria set out in this guidance, reimburse local authorities that use their discretionary relief powers under section 47 of the Local Government Finance Act 1988 (as amended) to grant relief.

It will be for individual local billing authorities to adopt a local scheme and determine in each individual case when, having regard to the guidance, to grant relief under section 47. Central government will fully reimburse local authorities for the local share of the discretionary relief (using a grant under section 31 of the Local Government Act 2003).

Full guidance on how to apply the Nursery discount.

State aid: As set out in the updated guidance on the Nursery Discount, the Government’s assessment is that, given the impact of Covid-19 in the sector receiving the relief that the nursery discount 2020/21 is not a State aid. The Government has considered this matter in discussions with the European Commission and is content with this analysis following those discussions. Local Authorities should provide the relief to all eligible properties.