Eight out of ten employers believe that skills shortages are a threat to their businesses, according to a new government poll.

The survey into Foundation Degrees found that 84% of employers felt that their business would be threatened in 2006 by a lack of skilled personnel to fill recruitment needs. This put skills' shortages at a greater risk to business performance than threats such as falling consumer spending and rising oil prices,

Furthermore, 74% believed that they might suffer from a lack of skills amongst their existing workforce. However, despite recognising the enormity of the skills threat, just 8% had actually been involved to date in designing courses to help combat the skills issues their business faces.

The poll also found that two in three businesses (68%) supported vocational training provision, and 87% believed there was a clear link between training and profitability.

Nearly all - and 92% - agreed that encouraging staff to increase their skills helps to increase employee satisfaction and retention.

Bill Rammell, Minister for Lifelong Learning, Further and Higher Education,
said: "I am pleased to see employers continue to back vocational qualifications. I want more UK business leaders to come on board and commit to the design and delivery of Foundation Degrees.