The National Audit Office (NAO) is warning that UK businesses must spend more money on staff training in order to boost their employees' basic skill levels.
A study conducted by the NAO revealed that while many firms offer training at A-level standard and above, they need to do more to address skills gaps at the lower end of the scale, including basic literacy, numeracy and language skills.
The NAO warns that although employers spend a total of £23.7bn on educating and training their staff, still one in five businesses are finding that staff lack the necessary skills, at an estimated cost to business of £10bn a year.
The NAO is calling on the Government and businesses to work together to provide tailored education and training programmes.
Auditor general Sir John Bourne said, 'A more skilled workforce is vital for national productivity and the delivery of public services. Better skills are also important for the country to maintain its position in an increasingly competitive global economy'.
Date:15 December 2005
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