According to this years CBI/Pearson Education and Skills survey, the demand for higher-level skills in British industry is set to grow.

Sectors central to future growth, including manufacturing and construction, will be particularly 'hard-pressed'.

The survey of 310 companies reveals:

• Two in three businesses (68%) expect their need for staff with higher level skills to grow in the years ahead, but more than half of those surveyed (55%) fear that they will not be able to access enough workers with the required skills.

• Demand for highly skilled workers is particularly strong in sectors critical to the rebalancing of the economy – engineering, science and hi-tech (74%), construction (73%) and manufacturing (69%).

The CBI is concerned that while the new apprenticeship levy for larger employers may fund more apprenticeships to meet the Government's target of three million, it will not deliver the 'high-quality, business relevant training' needed.

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Of apprenticeships starts in 2013/2014, just 2% were higher apprenticeships, which lead to qualifications at a level equivalent to higher education.

The CBI said: "Business is clear that the Government must accelerate reforms and ensure employers are in control when it comes to the design and delivery of apprenticeships to boost quality."

Katja Hall, CBI Deputy Director-General, said: "The Government has set out its stall to create a high-skilled economy, but firms are facing a skills emergency now, threatening to starve economic growth.

"Worryingly, it’s those high-growth, high-value sectors with the most potential which are the ones under most pressure. That includes construction, manufacturing, science, engineering and technology.

"The new levy announced in the budget may guarantee funding for more apprenticeships, but it’s unlikely to equate to higher quality or deliver the skills that industry needs. Levies on training already exist in the construction sector where two-thirds of employers are already reporting skills shortages.

"Employers have a critical role in upskilling the workforce, but part of the deal must be for real business control of apprenticeships to meet their needs on the ground.

"The best way to plug the skills gaps and provide quality training is to speed up existing apprenticeships reforms already underway and encourage smaller firms to get involved."

(LM/MH)