Nursery to close after running costs quadruple

A Leicestershire nursery has announced its closure after finding out its rent and service charges were set to quadruple.

Oak Treehouse Nursery, in Shepshed, informed parents this week that it will be shutting.

Managing director Sally Walton-Maxfield said in a letter to parents the decision had been "the hardest of [her] life".

The site is owned by Leicestershire County Council, which said there had been discussions with the nursery to see if there “was a way forward”, but they had not been able “to come to a viable solution”.

Ms Walton-Maxfield told the Local Democracy Reporting Service: “As you can imagine, it is a very difficult time for both staff and parents.

"Our rent, including operational costs, has quadrupled.

“We want to express our gratitude to all the parents for their support during this challenging period.

"We are also thankful for all the staff who have contributed to making the Oak Treehouse what it is today, and we will miss all of the children and parents.”

A spokesperson for the county council, which sets rent and service charges for the nursery, said the current charge totalled about £15,000 a year, but confirmed the authority was proposing to increase that to £60,000.

That would have been made up of £26,000 in rent annually, which was “based on market rents for similar properties”, they added.

The remaining £34,000 was a proposed service charge, “reflecting the actual costs being incurred, such as cleaning and utilities".

Lead member for children and families and acting leader of the council, Deborah Taylor, said: “We appreciate this is a difficult time, but we’ll work with parents to find alternative places for their children in the area.

"Since the [neighbouring] school converted to an academy, the nursery building has become the responsibility of the council.

"The costs and service charges have been reviewed to ensure they are in line with current market rental prices and service charges."

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