The report, which was commissioned by a select committee of MPs as part of an inquiry into Sure Start, said 92 per cent of centres are close to breaking even or under budget, compared with 60 per cent in 2006. Some local authorities have improved finances by clustering centres under one manager.
However, there is still 'widespread concern' among centres about the long-term viability of childcare in centres.
The report found that 59 per cent of LAs said little or no childcare in their area was wholly funded by fee income and that 53 per cent of centres offering childcare report the service operates at a loss.
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