Little Owls nurseries: Leeds Council to save over £600,000 after transfer of Rothwell and Shepherds Lane sites
Leeds City Council has approved the transfer of two Little Owls nurseries to new providers - saving upwards of £600,000.
Officials have approved the transfers of Rothwell and Shepherds Lane Little Owls nurseries to Sweet Peas Day Care and Teaching Ltd and Sunshine Community Nursery Ltd respectively.
It is estimated that the transfer of the two nurseries will earn Leeds City Council in-year savings of approximately £124,000 in 25/26 and a full-year saving of approximately £497,000 in 2026-27 onwards.
Sweet Peas Day Care and and Sunshine Community will also enter into a 10-year lease with the council, bringing in a combined potential rental income for both sites of £72,000 per year.
A council spokesperson said: “A full and rigorous review of our Little Owls nurseries was undertaken to address the service’s ongoing deficit amid the council’s increasingly challenging financial position, while ensuring sufficient early years places across the city.
“As part of that review, an exercise seeking interest from alternative high-quality providers for eight of the nurseries was carried out along with continuing engagement and consultation with families, staff and partners.
“Two new alternative providers, Sweet Peas Day Care and Teaching Ltd and Sunshine Community Nursery Ltd, have now been approved to take over the management of Rothwell Little Owls and Shepherds Lane Little Owls in Chapeltown, respectively.”
The transfer of power comes after three sites were shut last year, and 12 more placed under review as part of a major Leeds City Council cost-cutting drive to tackle a projected £273 million budget black hole over five years.
Meanwhile, after failing to find “satisfactory alternative providers,” the council has announced that they will retain responsibility for six remaining sites at Bramley, Meanwood, Burley Park, City and Holbeck, Hunslet Rylestone and Osmondthorpe.
This is in addition to the nine sites the council committed to retaining at the outset - Chapeltown, New Bewerley, Little London, Harehills, Swarfcliffe, Seacroft, Middleton Laurel Bank, Two Willows and Armley Moor. Discussions are continuing with St Mary’s CE Primary School regarding its interest in Hunslet St Mary’s Little Owls.
An authority spokesperson added: “This investment in Little Owls, at a time of significant financial stress for the council and local government in general, supports the Leeds Best Start and Beyond strategy, which aims to give children across the city the very best start in life.
“We will of course seek to ensure, through ongoing focused work, that our directly delivered provision is as effective and efficient as it can be. Leeds City Council remains an outlier amongst local authorities in England in continuing delivery of its own in-house nursery provision.
“The council will work closely with families and staff at Rothwell and Shepherds Lane Little Owls to ensure a smooth transition to the new providers and will retain full control during the transfer process to ensure no gap in service delivery.”