Bill Alexander, the council's head of service for children, young people and families, said that the current cost of early years services has exceeded council resources. He predicted that if the number of under-fives continued to decline at a steady rate over the next decade, the level of grant could fall by up to 1.08m.
There are 244 centres providing early education, around 60 more than primary schools. Unless a significant amount is moved from other budgets into early years, said MrAlexander, the present provision will be unsustainable.
A new strategy proposes offering wraparound provision involving the local authority, voluntary and private sectors, with joined-up management.
Mr Alexander said, 'The new system will move towards developing a more sustainable service that meets the needs of all families. If there are a range of providers offering different services in one village - for example, childcare, nursery education, and Sure Start - we will ensure these services come together.'
The council is also reviewing the allocation of nursery co-ordinator teachers, support teachers employed by the council, with a view to reducing numbers.