British companies find that recruiting qualified staff is more worrying that either the threat of terrorism or bird flu, according to a survey by Lloyds TSB Corporate Markets.

It found that one third of companies say the skills gap is there biggest concern, while only 4% cited bird flu or terrorism.
Almost 50% of companies said they had experienced difficulties in recruiting qualified staff, while one-fifth said they had encountered the same labour problem with unskilled workers.

The survey found that a third of businesses are planning to offer above-inflation pay increases to tempt suitable workers.