One in three businesses are forced to pay for staff to have lessons in basic literacy and numeracy, according to a survey from the Confederation of British Industry.

Recruits needed to urgently improve include simple arithmetic without a calculator, the ability to interpret data, competence in percentages and calculating proportions, said the report.

Written communication, communicating information orally, understanding written instructions, and correct grammar and spelling are the areas in need of most improvement, businesses said.

CBI director general Richard Lambert says the report was a sad indictment of how the education system has let young people down.