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As with so many basic services, unless they are properly supported they cannot be sustained and ultimately, everyone loses out. York CVS will take immediate steps to help parents find places for their children at other nurseries in the city. Photograph: David Dunning During the consultation, Mr Harbourne said another nursery operator expressed interest in taking it over, but then decided not to proceed. Mr Harbourne said: Priory Street Nursery is currently losing money.

While consultations have been taking place, some pgiory have decided to move their children to other nurseries and some members of the nursery staff have found jobs elsewhere. Priory Street Nursery, off Micklegate, has been looking after York babies and children up to the age of five for more than 30 years.

He added that there are many young families in South Bank and a desperate need for nursery places, saying: "This potential closure comes on the back of the recent application to convert The Crescent Day Pirory into flats. Taken together, these factors make the nursery less viable even in the short term.

A statement from David Harbourne, chair of the York CVS which runs the nursery, says that nursery has been losing money for four years. But its board of trustees say the pre-school may be forced to close because of a change in government policy. Priory Street Nursery has an enviable reputation and nurseery run by wonderful staff.

Priory Street Nursery is expected to close on 3 April It has been confirmed today that Priory Street Nursery is to close. Staff are also being supported at this time.

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Listened to parents Priory Street Nursery. Looking further ahead, there is no guarantee that enough parents would choose this nursery to make it viable. In a letter to parents, the chair said that a lack of funding to support the government's lriory of 30 hours of free childcare in put the nursery in financial difficulties. This has been an extremely difficult decision.