THE CURSE of writing an editorial one week before the spending review for 2015-16 is announced may well be about to strike. But I will plough on and hope that next month I will be able to say, ‘I got it wrong, everything is ne...’ is could well be a pivotal moment for the early years sector, as funding streams are announced amid departmental budget cuts. At the time of writing, several online news sites are reporting that the early years will su er cuts, while the schools budget is protected. Patrick Wintour, writing for www. guardian.co.uk [Pre-school and further education may face cuts in spending review, ursday 20 June] reports that schools minister David Laws told an IPPR think tank meeting that he was pleased about the outcome for schools, implying that settlement for further education and pre-school learning may be less good. e story also suggests the department was willing to take a cut of £2 billion. If this is true then we should be very worried in the early years. Of course, in times of austerity we should all be prepared to play a part in cost control, but it would not take a cynic to wonder whether a protected school’s budget would best serve Michael Gove’s academy and free school programme, when money would be much better spent in providing adequate funding for the early years sector and early intervention. As I write, these are all simply reports, and the reality may well be that the spending review is kind to the early years sector, but any loss in funding will be a major blow, especially in light of the recent NDNA Business Performance Survey, which revealed that ‘chronic underfunding of free early education places is threatening the a ordability of high-quality childcare places for families’. e report highlighted that nurseries are ‘being forced to make up losses on government-funded free nursery hours through the fees they charge parents for extra hours, pushing up the cost of childcare’. According to the survey, 82 percent said the hourly rate for funded places did not cover costs, with an average loss of £700 per year, per child. Of course, More Great Childcare contained within its pages a number of measures to improve the nancial state of the early years. Unfortunately, for the sector, the major cost-saving/revenue-generating measure, the relaxation of ratios was never going to solve any problems, even according to the DfE’s own calculations. So, with costs increasing, the expansion of free entitlement to a greater number of two-year-olds and with local authority budgets no longer ring-fenced to ensure a certain level of funding reaches the front line, the sector must look to the spending review with trepidation. On top of the inadequate level of free entitlement funding, the sector has also been tasked with increasing quali cation levels and playing their part in improving pay and status. Perhaps, if you are a big chain you will be able to cope with any loss of funding, but for many PVI settings, or childminders, many of which provide excellent provision, where will the money come from, other than rising costs to parents? Editor Neil Henty MSc eye@markallengroup.com