Over half of employers say that it is more difficult to recruit skilled workers now compared to five years ago.

A report by the British Chambers of Commerce (BCC) found that 55% of employers found it harder to recruit people with the skills they need today compared to 2002.

However they were committed to ensuring their staff have the right skills. Over 83% of small businesses provided training for their staff and 77% make professional assessments of staff training needs and evaluate the effectiveness of the training they pay for.

The survey also found that businesses often found it difficult to access training. The cost of training, time taken away from the businesses in order to attend training courses and limited eligibility for government funding were the main barriers cited

David Frost, director general of the BCC said; "As the effects of globalisation are more widely felt it is imperative that the UK workforce is highly-skilled if our economy is to remain competitive. The current education and vocational training system is failing to provide workers with the skills that businesses need. If this is not effectively addressed UK businesses will be seriously disadvantaged."

The BCC said that while it recognised the efforts being made, certain parts of the government's skills strategy needed to be improved. For example only a sixth of employers felt that their Sector Skills Council effectively represented their needs.

Louise Potter, the British Chambers of Commerce Policy Advisor for UK Skills said: "Businesses recognise the importance of skills which is why they spend on average £350, per employee, per year on training. However, for many small businesses it can be difficult to absorb this cost. Government support initiatives such as Train to Gain are the right way forward in engaging more SME's in training and we will be working with them in increasing awareness of the scheme amongst SME's.”