Commenting, Neil Leitch, chief executive of the Early Years Alliance, said:
"The Federation of Small Businesses is absolutely right to highlight the vital role that nurseries, pre-schools and childminders play in supporting parents to return to work, and to warn that much more needs to be done to safeguard small businesses within the childcare sector itself.
"While much attention has now turned to the reopening of schools, early years providers - which deliver care and education to over a million children in England - are continuing to struggle. With the increased costs of operating during a pandemic alongside a continued reduced demand for places, our chronically-underfunded sector will not be able to cope for much longer without urgent support.
"With the Spending Review taking place shortly, we urge the government to ensure that the early years sector gets the investment it needs to remain viable, both now and in the long term."