In the annual childcare lecture for the Daycare Trust, he admitted there were major gaps in provision.
However, he argued that local authorities were best placed to co-ordinate the current patchwork of public, private and voluntary sector provision and ensure services were tailored to local needs.
Balls responded to concern that the strong community-focused nature of Sure Start was in jeopardy as children's centres were rolled out nationwide.
He said: "Local authorities will need to be willing to ensure the full involvement of parents and the voluntary sector and have the powers to ensure that the current emphasis on health and maternity services as well as education and childcare is maintained."
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