Devon has lost nearly 50 childcare providers in a year even though local demand outstrips comparative national figures.
There are now 47 fewer childcare settings, which includes childminders and out-of-school clubs, in spite of the number of people needing free childcare.
The drop means there are now 1,274 childcare providers in the county.
And although the number of under-five-year-olds in Devon has fallen by 751 this year, the portion of such children entitled to care is high.
The percentage of two-year-olds in funded places was 86 per cent, higher than the 72 per cent national average, while three- and four-year-olds taking up early years funding at 96 per cent was also higher than the 92 per cent national figure.
Requests for the 30-hour free childcare entitlement had also risen.
In spite of the drop in provider numbers, and a slight fall in the number of settings securing a good or outstanding rating from education regulator Ofsted, councillors were asked to agree that the county’s childcare provision was sufficient.
The council is not responsible for providing childcare itself, but has a duty to support the sector.
But Cllr Martin Wrigley (Dawlish), deputy leader of the Liberal Democrats, expressed his frustration at the report and wants more work done.
“This report is vitally important to children and young parents of this county and it is atrocious, there’s no other word for it,” Cllr Wrigley said.
“It says overall there is a sufficient level of childcare, but there is a lack of out-of-school provision, a decrease in providers rated good or excellent, and a reduction of 47 groups.”
He cited Dawlish, where he said just one nursery and three childminders were available for a population of roughly 15,000 people.
“For a town that has had 2,000 to 3,000 new homes in recent years with young families coming to the town, it is not sufficient,” he said.
“I raised a fuss about this last year and had an instant response saying action would be taken, but over the year there has been lots of attempts and only in the last few weeks has there been any action.”
Cllr Wrigley added that the town’s mayor had met with schools recently, which led to six possible new childminders being identified.
“But why did it take a year for that to happen?,” Cllr Wrigley asked.
Areas where provision is low were highlighted in the council’s report as so-called ‘hot spots.’
A total of 15 areas were highlighted, including Cranbrook, Sidmouth, Exminster, Cullompton, Ilfracombe, Bideford, Fremington, Sherford and Okehampton, where a rise in housing development has led to more need for childcare services.
Recruitment and retention of childcare staff, partly caused by low levels of pay amid the rising cost of living and lack of affordable housing is also highlighted in the report..
Julian Brazil, the leader of the Lib Dems (Kingsbridge), thought the 91 people who had filled out forms because they couldn’t find childcare probably underrepresents the problem.
The council said it is seeking to promote childminding, and had removed its fees for a training course aimed at people interested in taking up the vocation.
Councillor Andrew Leadbetter (Cons, Wearside and Topsham) member for children’s services and schools, said he had been “assured by the service that the sufficiency requirement has been met and I have the paperwork to prove it”.
He praised the work of the council’s children’s services department.