Children's Nurseries UK Market Report 2009, published by market intelligence provider Laing & Buisson last week, showed that some of Britain's biggest nursery providers carried debts of up to £10.5m in 2008.
Purnima Tanuku, chief executive of the National Day Nurseries Association, said: "These figures illustrate how difficult current financial conditions are for the childcare sector, and how regardless of size, settings are finding it difficult to balance increasing costs with keeping fees affordable for parents.
"While large nursery groups make up a relatively small proportion of the market, it is important that they still receive support from the relevant local authority."
Dwynwen Stepien, head of the Local Authorities Early Years Network, said that the current findings "underline the fragility of the sector". "With the recession there is going to possibly be a need for interim government support for settings if there is going to be a choice for parents," she said.
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