Business
‘I left Wales and moved to England for free childcare’
Bethan LewisEducation & family correspondent, BBC Wales News
Robin LloydFrom her Monmouthshire home, Robin Lloyd was able to see houses over the border in England knowing the families who lived there could access free childcare for their babies.
Robin and her husband decided to leave Chepstow and Wales and moved a 30-minute drive away to Gloucestershire so they would be eligible for support for children from nine months old.
In Wales, free childcare for two-year-olds is being expanded, prioritising disadvantaged areas but there is no support for younger children.
The Welsh government said its childcare programmes were “sustainable” and prioritising “more disadvantaged communities”.
Robin, a 35-year-old nurse, started thinking about childcare during her pregnancy.
“I realised that I would be paying almost double my mortgage each month in childcare in Wales but I could see England out of my window and the people in the houses over there would be having financial support,” she said.
“I knew I wanted more than one child but the cost of childcare was going to mean that it wasn’t going to be possible until my son was pretty much four years old.
“We were very cautious about the whole process but eventually decided that the way to afford a family of two children was to move to England.”
The move to the Forest of Dean cost £15,000 in solicitors’ fees and stamp duty “but overall was going to be a heck of a lot cheaper than trying to pay childcare in Wales”.
‘Really sad about it’
Since 1 September, working parents in England have been offered 30 hours of childcare a week during term time for children aged nine months to four years old.
There have been concerns about the availability of places and the cost of extra, unfunded hours.
But Robin said she had been able to get two days of funded childcare a week for her one-year-old, while she and her husband work part-time.
“That makes it far more affordable for somebody like me who’s just a nurse,” she said.
“I don’t have megabucks to be able to afford a home for my family and to have childcare.
“I’m really sad about it. I’ve left my home. But ultimately, if it means I can have the family, it’s worth it.”
In Wales, there is currently no childcare funding for children under two.
However the Welsh government is rolling out 12.5 hours of free care a week for all two to three-year-olds under the Flying Start scheme.
It said it had reached 15,901children through the scheme by the end of 2024-25 – roughly 52% of two-year-olds in Wales.
The next phase of expansion in 2025-26, funded by an extra £25m, is expected to “reach more than 4,000 additional children”, it said.
The Flying Start scheme is being extended by postcode, focusing on the most deprived areas first.
Merthyr Tydfil has become the first county in Wales to offer a place to all two-year-olds under the programme.
It covered a place every afternoon at Little Rascals nursery in Merthyr for Grace’s daughter, which she describes as “invaluable”.
She thinks it is important that all parents of young children, not just those who are working, are eligible for the support, meaning there is a “level playing field”.
‘Swathes don’t benefit’
“It’s so beneficial to have this programme for Merthyr, for everyone living here to have the opportunity for their children to go into childcare at such a young age without any stress about fees,” she said.
On the same site, Ana’s son goes to the forest school, where the children spend most of the day learning outside.
Their postcode was the last in Merthyr to become eligible for Flying Start childcare support in April.
“It’s such a shame that there are swathes of our country that don’t benefit from that,” she said.
“You just have to set foot inside one of these nurseries to find out how children love being around each other and learning from each other.”
In Merthyr, council bosses said “100% of early years providers” were able to offer Flying Start places, with capacity for all two-year-olds in county.
“This has been achieved over a considerable period of time, ensuring that we’ve got enough childcare places and that’s really important in all of this – making sure that whatever we commit to we’ve got enough childcare places,” said Sarah Ostler, the early years and Flying Start manager for Merthyr Tydfil council.
She said they had used Welsh government funding to extend the provision and had made sure there was “a suitably-qualified and experienced workforce”.
But in Monmouthshire, a councillor said parents were acutely aware of the different offer over the border in England.
Conservative county councillor Lisa Dymock said a number of people had moved to the area from Bristol with many under the impression they would be offered the same childcare offer as in England.
“Whilst they may have settled and live in a lovely location like south-east Monmouthshire, they’ve now realised [they’re] not entitled to this free childcare and they’re having to re-examine their budgets and their outgoings, which is hard for a young family,” she said.
‘Making a real difference’
Ms Dymock said that while Flying Start was “a very good scheme” it did not help women who needed to return to work and she wanted the English offer matched in Wales.
“I think that will help the household income, residents’ careers but also children’s development,” she said.
“I just think it’s a huge benefit and it’s what my residents are asking for – it’s what people want.”
The Welsh government said its childcare programmes were “making a real difference for families across Wales”.
It said the flying Start programme was now being extended two all two-year-olds.
“We’ve prioritised our more disadvantaged communities and made sure provision is sustainable”, a spokesperson said.
They said the Childcare Offer for Wales, providing up to 30 hours per week of care for three and four-year-olds, was more generous than England’s scheme.
“Unlike in England, it is available to parents in training and education as well as those in work and is available 48 weeks per year, compared to England’s 38 weeks.”
What are the political parties’ childcare promises?
In its autumn conference, Plaid Cymru announced it would offer at least 20 hours’ free childcare for 48 weeks a year to all children nine months to four years old by 2031.
The current offer of 30 hours for some three and four-year-olds would continue.
The Welsh Liberal Democrats said it would introduce 30 hours per week of childcare for children from nine months to school age and invest in school holiday provision.
The Welsh Conservatives said it would replicate the childcare offer in England of 30 hours a week for working parents of nine month to four-years-olds during term time.
It said there would be more details in its manifesto for the Senedd election.
Welsh Labour said it was “proud” to roll out free childcare for two-year-olds, providing a tax break for nurseries and expanding subsidised childcare for three and four-year-olds.
It is still discussing the offer for 2026 and beyond, the party said.
Reform UK said it was putting together a manifesto to “deliver the real change Wales needs”.
Mumbai: Lower revenue as a share of GDP has been more than offset by cuts to subsidies and spending on current schemes, leading to the smallest fiscal consolidation in six years, likely positive for growth, a new report has said.
The fiscal consolidation for FY27 is the slowest in six years. And the budgeted disinvestment, which is a below-the-line funding item, is likely to see the highest rise in six years, the report from HSBC Global Investment Research said.
“The central government continues with fiscal consolidation, though signing up for a gentler path for FY27; the fiscal impulse will likely turn neutral after several years in the negative, and this should be good news for GDP growth,” the research firm added.
The report said that the services sector was the focus of the Budget, “with ambitious plans and increased outlays for medical institutions, universities, tourism, sports facilities, and the creative economy.”
Urban infrastructure saw a renewed push with each City Economic Region (CER) set to receive get Rs 50 billion over 5 years.
Seven new high-speed rail corridors will connect major cities, the report noted, adding large cities will also get an incentive of Rs 1 billion if they issue municipal bonds worth more than Rs 10 billion.
The report highlighted policy priorities, saying, “new manufacturing sectors were given incentives, namely biopharma, semiconductors, electronic components, rare earth corridors, chemical parks, container manufacturing, and high-tech tool rooms.”
Direct taxes are expected to grow faster than nominal GDP while indirect taxes will expand more slowly, with gross tax revenues budgeted to rise about 8 per cent year‑on‑year, the report said.
Central government set a fiscal deficit target of 4.3 per cent of GDP for FY27 after a 4.4 per cent estimate for FY26, and nominal GDP growth was pegged at 10 per cent.
Business
India’s $5 trillion economy push: How ‘C+1’ strategy could turn country into world’s factory
New Delhi: India is preparing for a major economic transformation. The Union Budget 2026-27 lays out measures that could make the country the top choice for global manufacturing using the popular ‘China +1’ (C+1) strategy. This comes as international companies rethink supply chains after COVID-19 disruptions, rising trade tariffs and geopolitical tensions.
India has positioned itself as the backup factory for the world that is ready to absorb international demand in case of any crisis in China or Taiwan.
The government has offered tax breaks for cell phone, laptop, and semiconductor makers, making India more attractive to foreign investors. Reducing bureaucratic hurdles for global firms, the budget also strengthens the National Single Window System to simplify business procedures. The message is clear: India is ready to step in as a global manufacturing hub, ensuring supply continuity for the world.
The expressway to a $5 trillion economy
China presently dominates about 40% of global manufacturing. Its factories supply critical products worldwide, but 2026 is expected to be a turning point. Expanding influence and economic opacity have made global companies seek alternatives.
India has leveraged this moment, offering a comprehensive incentive package for foreign manufacturers. Analysts call it more than policy; it is a blueprint to become a $5 trillion economy and reclaim India’s historic position as a global industrial leader.
Why the world needs India now
The COVID-19 pandemic exposed the dangers of over-reliance on a single supplier. When China halted medical exports, nations realised the need for diversified supply chains. Major companies such as Apple and Samsung now see India as a dependable alternative.
China’s aging workforce and rising labour costs further enhance India’s appeal. With 65% of its population under 35, India offers a vast, skilled and affordable workforce for decades. The geopolitical uncertainty surrounding Taiwan, which produces 90% of advanced chips, has also created demand for a secure manufacturing backup. India is stepping in to fill that gap.
How India stands to gain from China’s challenges
India’s budget, 2026-27, slashes import duties on cell phone and laptop components, turning the country into a hub for component manufacturing, not just assembly. Electronics exports are projected to cross $120 billion by 2025.
The government has also launched a Rs 1.5 lakh crore semiconductor mission, attracting companies like Tata and Micron to establish advanced chip plants in India. In the chemical sector, stricter environmental regulations in China have shut down several plants, benefiting Indian companies such as Privi Specialty and Aarti Industries, which are now filling gaps in global supply chains.
Incentives for companies
The Production Linked Incentive (PLI) scheme promises cash rewards for output, covering over 14 sectors. This is India’s answer to Chinese subsidies. From land acquisition to electricity connections, the National Single Window System now enables businesses to clear all approvals through a single portal.
Infrastructure investment has also received a massive boost, with Rs 11.11 lakh crore allocated under PM GatiShakti. New ports and dedicated freight corridors are being built to ensure that exports from India reach the world faster and cheaper than ever before.
India’s moves points to a strategic shift in global manufacturing. By rolling out the red carpet for foreign companies and investing heavily in infrastructure, technology and policy reforms, the country is poised to become the go-to destination for global supply chains. The C+1 formula is not only a concept; it is a roadmap to turn India into the next industrial superpower and a $5 trillion economy.
At a time when global markets are witnessing high volatility due to geopolitical uncertainties, the hike in securities transaction tax (STT) on derivatives trades hit investor sentiment on Dalal Street on the Budget day. This in turn led to a sharp sell-off that pulled the sensex down by nearly 1,500 points—its biggest points loss on a Budget day—to close at 80,773 points. The sell-off also left investors poorer by Rs 9.4 lakh crore, the biggest Budget day loss in BSE’s market capitalisation.The day’s trading was marked by high volatility. The sensex rallied over 400 points as FM started her speech, fell about 1,100 points after the STT hike proposal was announced, partially recovered by mid-session to trade 600 points down on the day and then sold-off to close below the 81K mark for the first time in four months.On the NSE, Nifty too treaded a similar path to close 495 points (2%) lower at 24,825 points. Fund managers and market players feel the day’s sell-off was overdone, compounded by the absence of most institutional players since it was a Sunday. “The market’s reaction (to the hike in STT rates) was a bit overdone, although the decision itself was unexpected,” said Taher Badshah, President & Chief Investment Officer, Invesco Mutual Fund. “I think markets should settle down in 2-3 days.” Badshah said the Budget was in line with govt’s set path of the past few years, showing a conservative approach to setting targets.“The revenue and expenditure targets for FY27 are achievable. And since the rate of inflation is lower now, the nominal GDP growth rate of 10% may turn out to be on the higher side as inflation normalises during the year,” the top fund manager said. In Sunday’s market, of the 30 sensex stocks, 26 closed in the red. Among index constituents, Reliance Industries, SBI and ICICI Bank contributed the most to the day’s loss. Buying in software services majors Infosys and TCS cushioned the slide. In all, 2,444 stocks closed in the red compared to 1,699 that closed in the green, BSE data showed.STT hike aimed at curbing F&O speculation The decision to raise securities transaction tax (STT) for trading in equity derivatives means trading futures & options (F&O) will be more expensive from April 1. STT on futures trading rises from 0.02% to 0.05% now, and on options premium and exercise of options to 0.15% from 0.1% and 0.125% respectively. This could more than double statutory costs of trading F&O contracts.While the move is to curb excessive speculation by retail traders who mostly suffer losses, investors sold stocks of those companies that derive a large portion of their turnover from this segment. Stock price of Angel One crashed nearly 9%, BSE crashed 8.1%, Billionbrains Garage Ventures that runs the Groww trading platform, lost 5.1% and Nuvama Wealth Management lost 7.3%. STT hike follows a Sebi survey that showed that 91% of the retail investors lost money in the F&O market with average loss per investor surpassing Rs 1 lakh per year. Institutional and some high net worth players took home most of the profits from the segment.18% GST on brokerage for FPIs removedThe Budget proposed to do away with 18% GST charged on the brokerage that foreign portfolio investors pay in India. Among the host of changes to the GST laws that the finance minister proposed, one was abolishing clause (b) of sub-section (8) of section 13 of the Integrated Goods and Services Tax Act, 2017. This is being “omitted so as to provide that the place of supply for ‘intermediary services’ will be determined as per the default provision under section 13(2) of the IGST Act,” the Budget proposal said.
Budget’s mild fiscal consolidation to be positive for GDP growth: Report
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