Small businesses ask Hunt to tackle ‘childcare crisis’ in Budget

JESSICA FRANK-KEYES

ONE OF the UK’s leading business groups has called on the Chancellor to immediately tackle the “childcare crisis” in the upcoming budget as the high cost of childcare is increasingly forcing parents out of the workforce. Childcare providers face insufficient funding, the Federation of Small Businesses (FSB) told City A.M., and are either having to shut down or pass on costs to parents.

The group said the economic impact of the childcare crisis is “far-reaching” as it becomes impossible for some parents to work, forcing them to choose between childcare and their careers.

Although the government currently tries to fund 30 hours of free childcare for 38 weeks of the year, the FSB said there is a funding shortfall which providers have to pass onto parents.

“Childcare businesses are in dire straits,” FSB policy chair Tina McKenzie said.

Yesterday’s results showed revenues in 2022 surged over 30 per cent to more than £850m. However, Revolut is yet to reveal whether it has managed to maintain its profitability amid soaring costs.

Speaking with City A.M. yesterday, chief financial officer Mikko Salovaara said the firm’s long- awaited UK banking licence was also “imminent” and would be granted in the “very near term”.

Revolut applied for its full licence in early 2021 and the hunt for full authorisation has proved a speed bump to its growth in the past two years. In an interview with City A.M. last year, Revolut’s CEO Nikolay Storonsky criticised the pace of UK regulators.