Speaking at a Pre-school Learning Alliance conference, Patrick Diamond, a Number 10 policy advisor on education, said it was time to break a spiral that saw the sector struggle with bureaucracy and delays and the Government nervous about its capacity to deliver.
This vision was welcomed by alliance chief executive Steve Alexander, who said the need for true partnership with the private and voluntary sector must be enshrined in the forthcoming Childcare Bill.
While many councils were developing positive relationships with independent providers, the vast majority were struggling with their new responsibilities and a "significant minority" had a "flagrant disregard for partnership working", he said.
"They grab hold of any new money they can and pinch our staff," he told Children Now.
"That doesn't seem to be in the spirit of partnership the Government is talking about."
Nearly half of all providers were struggling to cover costs and some sessional provision was under threat because authorities were focusing on government targets for full daycare.
Alexander went on to unveil ambitious plans for the alliance, including getting involved in 100 children's centres by mid 2008.
Within three years all alliance settings will also have parent forums and all staff will be qualified to at least NVQ Level 2 standard.
- www.pre-school.org.uk.