According to a report to be released tomorrow by the University of Durham, students are more likely to choose ‘easier’ subjects which may not be as useful to employers in some small business sectors.

David Frost, director general of the BCC, describes the revelations as ‘terrible news’ for the economy and small business as the British economy is already ‘riddled with skills shortages’.

He comments: ‘If the UK is to globally compete as an advanced industrial nation we will need a stream of highly skilled individuals with qualifications in both science and technology. If we do not do this we will become a second division economic power’.

Last week, the government pledged £300 million in funds assigned to help address skills shortages in the manufacturing, construction and hospitality industries.