The proportion of state-funded nurseries in the red has risen more than five-fold in the last eight years, according to new analysis carried out for the Labour party.

The House of Commons Library research, commissioned by MP Lucy Powell, showed that the proportion of state-funded nurseries in the red rose from 3.5 per cent in 2009-10 to 20.3 per cent in 2017-18.

It also found that nursery schools are twice as likely to be in deficit than maintained schools overall, with one in 10 maintained schools in this position in 2017-18.

Ms Powell called for urgent action to prevent nursery schools closing - something she said would be “social vandalism”.

There are around 400 nursery schools in England, of which 63 per cent are rated ‘outstanding’ by Ofsted.

They have higher costs than private, voluntary and independent nurseries, partly because they employ more highly-qualified staff.

When the government changed the way early years are funded in April 2017, maintained nursery schools were given an additional £60 million a year for two years, after fears that hundreds could close.

But there has been no guarantee on funding after 2020, although children’s minister Nadhim Zahawi has urged town halls not to make any “premature decisions” on maintained nurseries.

Ms Powell said: “The loss of maintained nursery schools would be a terrible act of social vandalism.

“Whilst we often hear warm words about the excellent education nursery schools provide, this needs to be urgently backed up by secure, long term funding, so that we can safeguard the future of nursery schools across the country.”

The analysis has been carried out ahead of a Commons debate on maintained nursery school funding today. It also shows that:

• Maintained nursery schools could lose just under a third of their funding in 2020 when supplementary funding of £60 million per year ends.

• The average budget deficit for nursery schools has increased from £39,618 in 2009-10 to £60,798 in 2017-18.

A report by the All Party Parliamentary Group on Nursery Schools released in July 2018, revealed that two-thirds of nurseries responding to a survey by Early Education, an early years professional association, expected to be in the red by 2020.

And a later survey by Early Education revealed that more than a third of nursery schools had already had seen a drop in the funding available for children with special educational needs.

Mr Zahawi said: “We want every child to have the best start in life which is why we are spending more money than ever before to support early years education and childcare - around £6 billion a year by 2020.

“However, we recognise the need to monitor costs and the childcare provider market. 

“Maintained nursery schools make a valuable contribution to improving the lives of some of our most disadvantaged children, which is why we are providing local authorities with around £60 million a year up until 2019-2020 to protect maintained nursery schools funding.

“The position beyond this will be determined by the next spending review.”