A day nursery is set to permanently close with staff expected to be made redundant.

Southampton City Council leaders are being asked to approve the closure of Startpoint Sholing Childcare Nursery with immediate effect.

The recommendation to cabinet comes despite an overwhelming opposition to the proposal in a public consultation.

The council-run nursery can care for up to 26 children, however, since opening it has incurred a financial deficit year on year with a reliance on local authority subsidies to break even.

A report to cabinet by early years service manager Darrin Hunter said there was a £379,000 deficit in 2021/22, £367,000 in 2022/23 and £358,000 in 2023/24.

The forecast deficit for the current year is £202,000.

On the impact to children and families, the report said: “The council as part of its commitment to families have honoured the nursery contract that was in place with parents, culminating in all children transitioning to start school in September 2024.

“Due to the uncertainty about the nursery’s future, no new children were offered a place for September as any major disruption to a child’s early development can have a negative impact on their progress.

“In addition, any requests we have received from prospective parents for a space in September, have been written to, informing them that the future of the nursery is being reviewed and that until a decision has been made, we are unable to provide their child a place.”

Mr Hunter’s report said a task and finish group has been unable to identify a financially viable structure for the nursery.

Unison submitted an alternative proposal which showed an ongoing deficit of £44,000.

The cabinet report said this plan omitted various financial pressures and made “inaccurate” assumptions in income.

Of the 407 responses in the public consultation, 95 per cent disagreed with the plan to close down Startpoint Sholing.

The cost of shutting down the service totalled £329,740 – £52,696 notice pay, £74,982 redundancy costs and £202,062 forecast budget deficit for 2024/25 if decision to close is approved.

Uncertainty over the nursery’s future had led to “many” staff securing alternative employment, including in neighbouring childcare providers.

The report added that there are ongoing staffing shortages in Southampton’s childcare sector – 102 vacancies as of October - and the early years’ service could help to facilitate new external opportunities.

Cabinet members will make a final decision on Startpoint Sholing at a meeting on Tuesday, November 26.