Scores of families will lose their childcare and 17 people will lose their jobs if an Oxford nursery cannot find new premises.

The Oxford Nursery is on the site of Oxford Community School. The school says it needs extra space for its own pupils and will not be renewing the lease.

The nursery, in Barracks Lane, east Oxford, has 83 children on its books. It could be forced to close by April.

Headteacher at the school, Ian Johnson, said: "The school simply does not have space for the nursery on site any more."

Joy Vickers, co-director of the nursery, said: "We have single mothers working for us who will not be able to get jobs elsewhere. They can only work here because their children attend the nursery.

"I am confused because Mr Johnson has said he wants to open up the site more to the community."

Earlier, Mr Johnson told the Oxford Mail the school had made £70,000 profit last year from businesses, charities and community groups, and could make between £100-£200,000 in the coming year.

He said: "When it first opened in 1998 we only had 406 pupils. Now we have 1,150 students and need the extra space for activities for them.

"We will lose £10,000 per year in revenue when the nursery leaves, but we believe it is more important for pupils to be taught dance or art.

"The car parking for the nursery was poor, and it caused traffic problems along Glanville Road. The premises were dilapidated anyway, so the nursery moving out to another location is a win-win situation."

Pete Vickers, co-director of the nursery, has applied for planning permission to move to the County Trading Estate in Cowley.

But city councillors expressed concern at the lack of car parking, public transport and the possibility of industrial contamination in the area.

Councillors decided to defer their decision until an environmental survey is carried out and the nursery have tackled concerns over public transport and parking.

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