Cabinet
Subject: Future of Roundabout Nursery
Date of meeting: Monday 29th June 2026
Report of: Cabinet Member for Children, Families and Youth Services
Lead Officer: Name: Corporate Director for Families, Children and Wellbeing
Contact Officer: Name: Georgina Clarke-Green
Email: georgina.clarkegreen@brighton-hove.gov.uk
Ward(s) affected: All
Key Decision: Yes
Note: Urgency By reason of the special circumstances below, and in accordance with section 100B(4)(b) of the 1972 Act, the Chair of the meeting has been consulted and is of the opinion that this item should be considered at the meeting as a matter of urgency.
Note: Reasons for urgency The special circumstances for non-compliance with Access to Information Procedure Rule 5 and Section 100B(4) of the Local Government Act 1972 (as amended), (items not considered unless the agenda is open to inspection at least five days in advance of the meeting) were that the public engagement exercise did not end until 19th June 2026. Sufficient time was then required to allow for consideration and analysis of the responses received.
1.1 To agree the proposed transfer of the council-run Roundabout Nursery to Aurora Academies Trust (Aurora) which runs City Academy Whitehawk (CAW) on the same campus. Roundabout Nursery staff would transfer to Aurora in accordance with Transfer of Undertakings (Protection of Employment) (TUPE) Regulations 2006.
1.2 The transfer, under a business transfer agreement, would secure the future of early years provision for the local community in Whitehawk and strengthen links between children, families and schools. It would also ensure financial resilience and longer-term sustainability and contribute to reducing the budget gap as outlined in budget papers published in February 2026.
1.3 The transfer to Aurora would also support children’s transition between nursery and school and is consistent with the government’s school-based nursery policy.
1.4 This proposal supports delivery of the council plan in ‘Supporting the provision of high quality and inclusive education from early years through to adult learning’. It also supports the delivery and success of the council’s Medium Term Financial Strategy. The Council is currently experiencing significant and unprecedented pressures on many areas of service. In response, a comprehensive transformation programme has been developed to ensure that the Council can remain financially sustainable over the coming years.
1.5 Although the council is not legally required to operate nursery provision, as council-run nurseries are a non-statutory service, we recognise that maintaining high-quality nursery places is an important part of our commitment to improving outcomes for children. In some of the city's most deprived communities, nursery provision plays a significant role in helping to reduce inequalities and close the attainment gap. For this reason, we remain committed to ensuring that high-quality nursery provision continues to be available across the city, supporting children, families and the wider community.
2.1 Cabinet agrees to the transfer of Roundabout Nursery to Aurora Academies Trust.
2.2 Cabinet agrees to delegate authority to the Corporate Director for Families, Children and Wellbeing to determine the date of the transfer referred to in paragraph 3.17 below and to negotiate and enter into a Transitional grant Agreement, lease and Business Transfer Agreement to Aurora together with all ancillary documentation necessary to give effect to the transaction on the terms as set out in this report.
3.1 Roundabout Nursery is 8 am to 6 pm early years nursery provision, open all year round for 86 children age birth to four. 71% of children attending Roundabout live in a 0 to 20% most disadvantaged area of the city and/or receive early years free entitlement (EYFE) as a disadvantaged two-year-old. 48% of children at Roundabout receive Early Years Pupil Premium.[1]
3.2 The nursery employs 30 staff, 23 full-time equivalent. 97% of the staff are female.
3.3 In 2025/26 the budgeted subsidy from the council’s general fund was £365,000. Additional nursery costs include around £24,000 for utilities, building repairs and maintenance, management overheads, corporate contracts and other additional costs such as payroll, finance and HR.
3.4 Approximately 30% of nursery income is from the council’s general fund, with the remainder from the early years block of the dedicated schools grant, which funds the early years free entitlement, and parental fees.
3.5 Aurora runs CAW and as an academy trust is an exempt charity (it has full charitable status in law but is exempt from registering with and being directly regulated by the Charity Commission). If the transfer goes ahead, children at the nursery will become pupils of CAW which is currently going through the non-statutory process to lower its age range to 0. Aurora is committed to continuing the delivery of all year-round, all-day provision at Roundabout Nursery.
3.6 At its Ofsted inspection in June 2024 CAW was judged “outstanding” for early years provision.
3.7 CAW believes that lowering its age range will secure its future pupil numbers and sustainability. However, parents will still have to apply for a school reception place when their child turns four. This means that parents continue to be able to express a school preference; their child will not automatically stay on at CAW for their primary phase.
3.8 Should the transfer progress, CAW will have to follow the Early Years Foundation Stage framework for children aged 0 to four in the same way as all early years providers. As the nursery will still be open to children under the age of two, CAW will have to register on the Ofsted early years register and be inspected by Ofsted under this framework.
3.9 CAW will also have to follow the council’s early years free entitlement provider agreement which is consistent with the law and statutory guidance on early years funding.
3.10 In order to assure future financial sustainability and ongoing nursery provision it is proposed that the council agrees a three-year transitional grant with Aurora, as per recommendation 2.2 above. This grant will maintain the council’s wider oversight of nursery provision at CAW for a period of three years ending in March 2029.
3.11 It is proposed that the Roundabout nursery building will be let to Aurora on 25-year full repairing and insuring lease at peppercorn rent for entire term, on the condition that Aurora continues to run nursery provision and delivers social value as defined by council’s policy and reported to the council annually.
3.12 If the transfer progresses, a Business Transfer Agreement will be enacted – this will set out in detail exactly what is transferring from the Council to Aurora, including staff under TUPE, equipment, relevant contracts and data. It will also cover how children’s records are handled, identify any items excluded from transfer, and set out responsibilities for staffing costs, pensions and liabilities up to the transfer date.
3.13 Further details of the proposed Business Transfer Agreement, transitional grant agreed and the lease are given below.
3.14 If the transfer progresses, all Roundabout Nursery staff would TUPE to Aurora. Aurora is an admitted member of the East Sussex Local Government Pension Scheme and recognises the relevant trade unions. Aurora also honours National Joint Council pay rises.
3.15 The legal agreements identified above for the transfer will be drafted on the basis that they provide appropriate safeguards over the transfer, use of public funding and continued operation of the nursery.
3.16 These agreements are intended to ensure that Aurora is held to account for the provision, assets, staff and funding that transfer from the Council, and that there are clear legal mechanisms to protect the Council’s interests and support service continuity. Specialist external legal advice is also being commissioned to strengthen these arrangements wherever possible.
3.17 These documents will be finalised after the June Cabinet decision and signed ahead of the transfer completing at the end of the summer. The plan is for Aurora to take over the running of the nursery from 1st September 2026.
3.18 Business Transfer Agreement – this will set out in detail exactly what is transferring from the Council to Aurora, including staff under TUPE, equipment, relevant contracts and data. It will also cover how children’s records are handled, identify any items excluded from transfer, and set out responsibilities for staffing costs, pensions and liabilities up to the transfer date. This provides a clear legal record of what Aurora is taking on and helps protect the Council from future dispute.
3.19 Grant Agreement – this will specify the amount and timing of Council funding, what the funding can be used for, and the conditions Aurora must meet. It will include clawback provisions if funding is not used for the agreed purposes, and officers are seeking to ensure that Aurora’s obligations continue beyond the final payment date so that the Council retains longer-term rights of challenge if terms are not met.
3.20 A three-year transitional grant will be paid to AAT as follows:
· Year 1 (September 2026 to March 2027) £0.162m (broadly matching anticipated gap in income and expenditure for this part-year). Costs of running the nursery between April 2026 and August 2026 will continue to be the responsibility of the council.
· Year 2 (April 2027 to March 2028) £0.167m – this represents 60% of the recalculated annual shortfall (£0.278m) after allowing for expected changes in costs and income in the 2026/27 financial year
· Year 3 (April 2028 to March 2029) £0.111m – this represents 40% of the recalculated annual shortfall (£0.278m) after allowing for expected changes in costs and income in the 2026/27 financial year
3.21 This results in a saving on the service budget to the general fund, based on the budgeted subsidy for 2025/26 as follows
· Year 1 saving £0.050m
· Year 2 saving £0.198m
· Year 3 saving £0.254m
3.22 The full year saving of the service budget of £0.365m will be achieved by April 2029.
3.23 We are in agreement to pay Aurora some essential one-off costs to support the transition. These will be funded from the April to August 2026 nursery budget savings. This includes around £9,000 to cover increased pension costs and £15,000 as a one off contribution to additional running costs for the nursery.
3.24 Lease – a 25-year lease will be put in place for the nursery building. This will link to the wider legal agreements and set out Aurora’s obligations as tenant. The lease will restrict use of the building to nursery provision, and officers are seeking measurable conditions that would enable the Council to bring the lease to an end if required. This is an important safeguard in protecting the future use of the site. The property will be leased on full repairing and insuring terms. As part of this process, Aurora have instructed a condition survey to establish any immediate condition or compliance liabilities which will need to be undertaken. As part of the lease negotiations, we will consider any remedial work that needs to be undertaken or funded as part of the property transaction, ahead of final completion of the lease. As the current building user, we have continued to invest and maintain the premises, to ensure a safe and secure building. However, we will need to ensure that there is a fair settlement in terms of works being required within the first 12 months of the lease, given that Aurora will be taking on full repairing liabilities.
3.25 Because this is a business transfer rather than a service contract, the Council’s ability to direct Aurora’s day-to-day operation of the nursery will reduce over time, particularly once grant funding ends. However, this does not mean there will be no safeguards. The legal agreements above will establish clear expectations, financial controls and protections around the use of the site and transferred resources. In addition, any provider receiving early years funding must comply with the relevant funding conditions, statutory guidance and regulatory requirements, which provides a further layer of assurance around service standards and safeguarding. They will be required to be on the Ofsted early years register and that they must comply with the Early Years Foundation Stage framework, Working together to safeguard children statutory guidance and guidance from the Brighton & Hove Safeguarding Children Partnership, the Special Educational Needs and Disability Code of Practice, work with B&H Inclusion Support Service and the English as an Additional Language and Traveller Service. These are requirements of all early years providers who get funding from the Council.
3.26 The Council’s legal team is now preparing instructions for specialist external lawyers to advise on whether any further enforceable clauses can be added to strengthen oversight and protect service delivery for the longer term. This is intended to ensure that the Council has taken all reasonable legal steps to hold Aurora to account and to put in place the strongest possible safeguards within the structure of the transfer.
4.1 Consideration was given to approaching the wider market for expressions of interest in a nursery transfer. However, this would have been a prolonged process and potentially unsettling for staff, parents and children. The council needs to make the general fund saving in 2026/27 in accordance with its budget; there would not have been time or capacity/resources to do an extensive search, and there would be no guarantee that it would be productive. Aurora operates on the same site as Roundabout Nursery and therefore will provide a continuity of provision within the same community.
4.2 While private nursery providers have shown interest in expanding in Brighton & Hove, they have done this in the more advantaged areas of the city. Private nursery providers run largely on minimum wage staffing; it is likely they would not take on council staff with their terms and conditions. They also are not members of East Sussex LGPS. In addition, for private providers, TUPE requirements for council staff are a barrier to outsourcing, as well as elements of the Employment Rights Act 2025 which rules out a two-tier workforce from October 2026.
4.3 Experience is that voluntary sector nurseries in the city face significant financial pressures and would not have the capacity to take on a setting of Roundabout’s size. The number of voluntary sector providers has declined substantially in recent years because of ongoing financial and structural challenges. These providers are also subject to the same constraints around staffing costs, including salaries and pension commitments, which further limits their ability to expand or assume additional provision.
4.4 We have engaged with other schools regarding nursery provision, and the following concerns have been consistently raised:
4.5 There has been a decline in maintained school nursery provision, with five nursery classes closing in the past decade because of financial viability concerns.
4.4 Roundabout nursery could be retained as council-run provision. However this would require a significant ongoing general fund subsidy which is challenging considering the council’s current financial position.
5.1 In order to inform the development of these proposals and the final proposals in this report, a range of community engagement and consultation activities have taken place.
5.2 The proposals to transfer Roundabout Nursery featured in the council’s budget setting papers in February 2026 and staff were invited to a meeting with management at that time to inform them about the proposal in principle. At that time, it was not known that Aurora would be the proposed new provider, however staff were able to share known concerns / questions at that time, which helped inform the subsequent processes.
5.3 Staff were then invited to a pre-TUPE engagement activity on 20th May 2026 and had their Union representatives present at that meeting. The purpose of the meeting was to inform staff that the proposed partner for the transfer for the nursery was Aurora Academy Trust and to explain what the process would be for staff. The TUPE process was explained.
5.4 For staff the formal TUPE consultation process commenced on 8th June 2026 and runs until 7th July 2026. A group meeting was held on 8th June at which representatives from GMB and UNISON were present. Representatives from Aurora Academy Trust made a presentation about their intention to continue the current provision at Roundabout Nursery and answered questions from staff. During the consultation period a number of questions have been raised by individual staff about their circumstances, and these have been responded to on a individual basis. Individual questions have focused on matters such as working patterns, pay arrangements and caring responsibilities. Aurora will be holding further meetings with staff at Roundabout to offer more opportunities to meet with them and to ask any questions.
5.5 Parents and carers from the nursery have been communicated with directly to inform them of the proposal and were invited to contact the nursery if they had any questions or concerns. They were also informed of the YourVoice survey, covered below.
5.6 Community engagement has also taken place through the council’s Your Voice platform with a survey open 26th May 20206 – 19th June 2026 to gather views about the proposed changes. A summary of the survey responses is given below.
5.7 A question was asked in the survey – ‘How much do you agree with moving the Roundabout Nursery to Aurora Academies Trust to become part of City Academy Whitehawk?’
5.8 70 people responded to this. The range of answers is given below.
5.9 This shows that 87% of those who responded to this question did not agree at all with the proposal. 8.5% of respondents strongly agreed and 4% of people that submitted a response to the survey provided no answer to this question.
5.10 Respondents were then invited to leave a free text comment with their views. 34 people left a comment. Here is a summary of the views provided. A full set of the responses has been shared with Cabinet Members ahead of the meeting in June 2026.
Concerns and mitigations
Response: The nursery would be required to adhere to the Business Transfer Agreement, the lease and the Grant Agreement that will be put in place ahead of transfer. They would also be required to comply with the Early Years Foundation Stage framework, Working Together to Safeguard Children statutory guidance, the SEND Code of Practice, and the council's early years provider agreement. It would also be required to register with Ofsted for early years provision and be inspected by Ofsted.
Response: The proposal would retain nursery provision on the existing site. Aurora has stated its commitment to continuing all-year-round, all-day provision at Roundabout Nursery. City Academy Whitehawk Early Years provision was also judged to be ‘outstanding’ in their Ofsted inspection in May 2024. In addition, the proposed lease would restrict use of the building to nursery provision.
Response: Staff would transfer to Aurora under TUPE. It also states that Aurora would be required to comply with the SEND Code of Practice and work with Brighton & Hove Inclusion Support Service and the English as an Additional Language and Traveller Service.
Response: Alternatives considered included approaching the wider market, private nursery providers, voluntary sector providers, other schools and retaining Roundabout as a council-run nursery. The report sets out the reasons these options were not recommended.
Response: This proposal maintains the current offer within that area of the city.
5.11 We asked survey respondents to let us know where in the city they lived. About 42 respondents told us which part of the city they lived in, with many areas represented by 1 or 2 respondents. Below shows the results where an area had over 5 respondents.
5.12 This shows that a significant number (19 responses) from those that live in Whitehawk. However 31 people did not provide the area that they live in.
5.13 Local ward Councillors and the local MP have been briefed on the proposal.
5.14 As part of the proposal, City Academy Whitehawk is required to extend the age range of who is allowed to be on roll at the school. Currently their age range is 2-11 years old, to allow for their existing nursery provision. They are currently consulting on expanding their age range to 0-11 and that runs until 3rd July 2026. It will be for Aurora/City Academy Whitehawk to consider community responses made via that consultation and to take forward the age range expansion with the DfE, however that has provided another opportunity for views / questions to be shared regarding this proposal.
5.15 The council values all those who have taken time to share their views on these proposals. It’s important that they are heard, considered and plans amended accordingly. The council is putting in safeguards via the various agreements with Aurora, to maintain and sustain the high quality community focused provision at Roundabout. The proposed transitional grant will maintain the council’s oversight of nursery provision at Roundabout, post transfer. It will include clawback provisions which further ensures the agreed purposes. The proposed lease ensures a nursery provision continues, the building cannot be used for another purpose. The proposed business transfer agreed sets out the details about what will be transferred to Aurora, including staff (maintaining their terms and conditions), equipment and data. These suite of documents provides a clear legal record of the agreements with Aurora and protects the council’s intentions in the continuation of the nursery provision as it is.
6.1 A three-year transitional grant is proposed to be paid to Aurora as follows:
· Year 1 (September 2026 to March 2027) £0.162m (broadly matching anticipated gap in income and expenditure for this part-year). Costs of running the nursery between April 2026 and August 2026 will continue to be the responsibility of the council.
· Year 2 (April 2027 to March 2028) £0.167m – this represents 60% of the recalculated annual shortfall (£0.278m) after allowing for expected changes in costs and income in the 2026/27 financial year
· Year 3 (April 2028 to March 2029) £0.111m – this represents 40% of the recalculated annual shortfall (£0.278m) after allowing for expected changes in costs and income in the 2026/27 financial year.
6.2 As per paragraphs 3.23 and 3.24 above, a small number of additional costs / remedial works have been agreed in order to finalise the proposed transfer for September 2026. These are in addition to the year 1 transitional payment.
6.3 The proposal results in a saving on the service budget to the general fund, based on the budgeted subsidy for 2025/26 as follows
· Year 1 saving £0.050m
· Year 2 saving £0.198m
· Year 3 saving £0.254m
The full year saving of the service budget of £0.365m will be achieved by April 2029.
6.4 The effect of this arrangement in comparison with the initial proposal that was included within the Medium Term Financial Strategy is an additional cost to the council of £0.178m over the 3-year period 2026/27 to 2028/29. However, if the proposed transfer does not go ahead the ongoing cost to the council of maintaining Roundabout Nursery would be c. £0.300m per annum based on existing staffing and income streams.
6.5 Additional savings include utility costs, building repairs and maintenance, corporate contracts for example IT, broadband and management overheads.
Name of finance officer consulted: Steve Williams Date consulted: 22/05/26
7.1 The Council has the power to enter into an agreement to transfer the nursery business to Aurora by virtue of its powers under section 1 of the Localism Act 2011. The Council also has powers to grant a lease pursuant to section 123 of the Local Government Act 1972. In finalising the terms of the lease, the Corporate Director for Families, Children and Wellbeing will need to be satisfied that the requirements of section 123 of the Local Government Act 1972 are met and that all required consents as provided by statute for the disposal are in place. It will also be necessary for a subsidy analysis to be undertaken on final the arrangements to ensure compliance with the Subsidy Control Act 2022.
7.2 The proposals set out in this report will involve a transfer of Council staff to Aurora under a business transfer agreement in accordance with the Transfer of Undertaking (Protection of Employment) Regulations 2006 (the “regulations”). The staff will transfer to Aurora on their existing terms and conditions and will be consulted and engaged with as required under the regulations.
7.3 The preparation of the transfer agreement, the 25 year lease to Aurora and the grant agreement will be done by specialist external lawyers, selected from those firms on the Orbis Public Law [OPL] framework.
Name of lawyer consulted: Siobhan Fry and Eleanor Richards Date consulted: (22/06/2026)
Key risks in the transfer include:
8.1.1 The assurance of ongoing provision in Whitehawk in the same way as it is at present once the nursery is no longer run by the council. Aurora is committed to continuing to run the nursery all year round, for full days, and taking children from birth, so that it is suitable for working parents.
8.1.2 The proposed transitional grant and business transfer agreement, as well as the lease, ensures continued nursery provision. In addition all nursery providers in the city must operate in accordance with the early years provider agreement including delivering the early years free entitlements free to parents. The council audits childcare providers annually to make sure that they are following the rules set out in the provider agreement and national guidance. Extra audits are carried out if any concerns are raised, or in response to parental complaints about how EYFE is being provided.
8.1.3 Nursery staff at Roundabout may decide not to transfer to Aurora and instead seek alternative employment. During the TUPE process, Aurora will be informed of any such decisions to enable appropriate contingency planning. However, we will work closely to support all nursery staff to ensure that the transition is as smooth and positive as possible.
Key risks of not agreeing to the transfer include
8.2.1 The council not meeting its savings target
8.2.2 Closure of the nursery through inadequate general fund subsidy being available
9.1 An Equalities Impact Assessment for Restructures, HR Policy and Staff Change Management Activity has been undertaken to ensure consideration has been made on any impact on staff, should the TUPE transfer go ahead. The main potential impacts relate to disabled staff who may experience greater stress or require reasonable adjustments during organisational change, and staff on maternity or family leave, who may face barriers to engagement in the TUPE process. There is also recognition of potential short-term workforce instability if staff choose not to transfer, and data gaps, particularly in relation to intersectionality and certain groups (e.g. carers, care leavers).
9.2 To mitigate these risks, the assessment sets out a range of actions including tailored individual support, clear and ongoing communication, access to trade unions and HR advice, access to mental health and wellbeing support, and ensuring reasonable adjustments are identified and implemented. The use of consultation, engagement opportunities (including 1:1 discussions), and specialist advice (e.g. sharing the assessment with the council’s equalities team) are intended to minimise adverse impacts. Overall, it is concluded that the proposal can proceed as planned because no significant disproportionate impacts have been identified and where potential impacts exist, these are considered manageable and mitigated through targeted actions, alongside the wider benefits of sustaining early years provision and securing staff employment terms through TUPE.
9.3 A Budget Equality Impact Assessment for the change in service provision (namely changing the nursery from being council run, to moving to another provider) was completed and provided to support the Full Council meeting in February 2026 when the budget setting decisions were taken. This is provided as Appendix 1. This assessment identifies potentially significant but mitigable impacts, particularly for groupswho are more reliant on local, affordable early years provision. The main impacts relate to children under five, especially those living locally in Whitehawk where childcare provision is comparatively limited, as well as children with SEND, who are overrepresented at the nursery and whose families already experience barriers to accessing suitable childcare.
9.4 There are also identified impacts for Black and Global Majority children, families experiencing socio-economic disadvantage, and migrant or refugee families, who may face additional challenges in accessing alternative provision, alongside women (as primary carers) and those on maternity leave who are more dependent on stable childcare to support employment. To mitigate these risks, the proposal includes maintaining the same level and type of provision (EYFE, hours, and age range) through any alternative provider, ensuring service specifications reflect the needs of disadvantaged and protected groups, retaining staff terms via TUPE, and providing support through Best Start in Life Family Hubs to help families access places where needed. The assessment concludes that the activity can reasonably proceed because the core mitigation is to retain equivalent childcare provision locally, thereby minimising disruption and maintaining access for the most affected groups, particularly disadvantaged families and those with additional needs.
10.1 The proposal set out within this report supports the sustainability of high-quality nursery provision in Whitehawk.
11. Health and Wellbeing Implications:
11.1 Ongoing provision of a high-quality nursery directly improves and supports the health and wellbeing of young children in the area and is integral to the council’s Best Start in Life strategy.
12. Procurement implications
12.1 None identified directly relating to this report.
13. Crime & disorder implications:
13.1 None identified directly relating to this report
14.1 To ensure ongoing high quality early years provision in Whitehawk it is recommended that the proposed transfer of Roundabout nursery to Aurora is agreed. These agreements are being completed by appropriate legal officers and will ensure the proposed transfer provides the council with the safeguards required around the continuation of the nursery provision at Roundabout.
Supporting Documentation
1 Budget Equality Impact Assessment from February 2026