These costs were previously covered by a start-up fund raised from various foundations on the understanding that they had no influence over the group.

The report calls for local authorities to develop childcare schemes with a start-up fund of up to 20,000.

It calculates that a 50 million start-up fund would allow councils to give a 10 per cent council tax discount - worth up to 200 - to recognise voluntary workers' efforts.

The start-up fund will seek to recreate the private-equity group 3i, which was set up after the second world war in order to stimulate new investment in companies.

An inheritance from his uncle provided the start-up funds in 1991.