Private nurseries have accused council directors of starving them of cash to fund public crèches and demanded that childcare money is handed to parents rather than local authorities.
They claim that councils are hoarding public funds and passing on 20 per cent of government money to the private enterprises, which provide 30 per cent of childcare across the country.
The Scottish government provides funding for up to 1,140 hours of funded care a year under a scheme administered by councils. The Scottish Private Nursery Association claims the local authorities have a clear conflict of interest as they both operate their own nurseries and decide on giving cash to independent rivals.
