Responding to a question in parliament, Ms Hughes said that over 20 per cent of registered childcare provision had closed in the period from April 2004 to March 2005, compared with 16.7 per cent in the previous financial year.
But she said that the data recorded for the first six months of the 2005/2006 financial year show that closures are in decline.
'Since April 2005, funding for local authorities has focused on sustaining existing good quality provision that meets local needs, rather than creating new places which may not match local demand and may put provision at risk,' said Ms Hughes.
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