Steve Alexander, chief executive of the alliance, voiced concerns about how changes would affect the children's services watchdog's ability to remain objective and ensure its work was carried out effectively.
Alexander added that the introduction of market forces could result in a loss of credibility and that any privatisation ran the risk of driving down costs.
"This in turn could jeopardise the standards and quality of crucial early years services, which is in no one's interests. We therefore urge Ofsted to consider the full ramifications of these proposals," said Alexander.
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