North Surrey dancing establishment for infants (7)
I believe the answer is:
nursery
'establishment for infants' is the definition.
(where infants might be cared for)
'north surrey dancing' is the wordplay.
'north' becomes 'N' (abbreviation).
'dancing' indicates an anagram.
'surrey' anagrammed gives 'ursery'.
'n'+'ursery'='NURSERY'
(Other definitions for nursery that I've seen before include "Place for tending young children, or plants" , "Establishment for plant cultivation" , "could be good for growing children" , "Where you could see young" , "Race for horses that are two" .)