The Chartered Institute of Personnel and Development believes the Tomlinson report has the potential to address skills shortages in the UK.

The CIPD said the recommendations for the future of education for 14-19 year-olds could strengthen vocational skills.

Victoria Gill, Learning, Training and Development Adviser at the CIPD, said: "The proposal to strengthen the vocational qualification system and include more 'employability' related learning is an important step forward.

"Placing a greater focus on both basic skills and efforts to stretch more able students will be welcomed by our members, who report increasing skills shortages."

The proposals would mean that GCSEs and A Levels would be integrated into a four-level diploma. In response to employers concerns about basic skills levels, students would have to pass tests in three core skills needed for the workplace – literacy, maths and ICT. There is also a commitment to improve vocational education.

However as reported on TrainingZONE the CBI said its members remained to be convinced that the reform would boost basic skills levels.

The Government will give its response to the proposals early next year. If they are accepted the changes, which relate to England only, would be tested in a pilot and changes to existing exams be introduced in 2007.