PARENTS are trying to find a way to keep their nursery school going after discovering it faces a 500 per cent increase in rental costs

Newstead Pre-School in Lee is currently run by a parents' committee but the lease is due to run out at the end of this month and they are locked in negotiations with Lewisham Council to keep it open.

The nursery, which offers care for 24 children and employs four people, has operated in Birch Grove since 2000 and currently has a good rating from school inspectors Ofsted.

But parents say plans to hand it over to a business when the lease runs out in this month have stalled after a proposed council rent increase from £3,500 a year to £18,000.

Ward councillor Councillor Jim Mallory insisted the pre-school was still a going concern, saying: "I have managed to arrange for discussions to take place between the council and the pre-school's committee to look for a solution that would help the parents overcome their current difficulties."

Dawn Banks, 39, of Pitfold Road, Lee has a  daughter who goes to the nursery.

She said: "It would be a real shame for the community. It seems like a shame because we don't have another one in walking distance."

Her partner Nick Prater, 38, said: "As a group of parents, we are looking to continue on a not-for-profit basis, with a refreshed Parents' Committee.

"I firmly believe the pre-school has a future. It's an asset to our community."

On November 14, Mayor of Lewisham Sir Steve Bullock is expected to consider a report on handing over three early years centres to social enterprises set up by parents. Facilities at Rushey Green, Ladywell, and Honor Oak had all faced closure due to budget cuts.