A proposal to take a nursery out of council control would be a “tragedy” and could undermined children’s development, it is claimed.

Ray Lodge Nursery, in Snakes Lane East, Woodford Green, is one of four nurseries which could be privatised in a bid to save £180,000.

A report due to be discussed by a council committee tomorrow details how the nursery made a £37,240 loss last year.

The nursery received a “good” score in an Ofsted inspection last year and it is currently free to register a child, with a number of free sessions each week.

But there are concerns that some parents would not be able to afford to use the nursery if it was in private hands.

Fees at private nursery Beechoak Farm Montessorri, in Church Road, Loughton, are £63.20 a day, with a £500 deposit required to secure a place.

Conservative leader Cllr Paul Canal, governor at the Ray Lodge Primary school next door, said: "There are parents with low incomes in the area and it could lead to more parents choosing to not put their children in nurseries.

“Some children do not receive enough support from home and could be a tragedy if some children are forced to catch up when they reach school age.

The plans will be discussed at the Children and Young People’s Service Committee at Redbridge town hall, in Ilford, tomorrow evening.

The nursery did not wish to comment and Redbridge council has been contacted for a response.