'UK Skills: Making the Grade', by the British Chambers of Commerce (BCC), says that 55% of employers are finding it harder to recruit skilled staff than they did five years ago.

The BCC says the report shows it is vital that the Government puts business needs at the centre of its plans to shake up vocational training for young people and adults.

A BCC spokesman said:

"The current education and vocational training system is failing to provide workers wilth the skills that businesses need.

"If this is not effectively addressed, UK businesses will be seriously disadvantaged."