The research by PricewaterhouseCoopers focuses on the perceptions of PVI providers of Government policy in six local authority areas.
It examines how local authorities are assessing demand for childcare to meet their new duties under the Childcare Bill and calls for 'fine-grained and robust' local authority needs assessments.
It also considers the scope for consolidation in the PVI sector.
The report said that 'growth has slowed in the past one or two years, and some providers are experiencing falling occupancy, fee pressure and increased staff costs, despite high levels of demand nationally'. It said that while 'increased local competition is a key factor' for some providers, others 'believe that additional local capacity in children's centres and schools is having a significant impact'.
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