The improving economy and fears over the lack of skills in the UK workforce are prompting more employers to invest in training, new research has revealed.

The study, conducted by the Chartered Institute of Personnel and Development (CIPD), found that one in three British businesses expected to increase their training budgets this year.

More than eight in ten firms said they had funds dedicated towards training, while 32 per cent said that their employees receive, on average, over five days of training a year.

However, nearly one in five employers admitted to training staff for less than three days per year.

Firms who provide plenty of training were positive about its benefits, with 62 per cent saying it boosted staff competence, while six in ten felt it helped technical skills

The CIPD said that the increased focus on training was welcome due to the chronic skills shortage among UK employees, which is hindering small firms at a time of potential expansion after the economic downturn.

But the human resources body warned that the increases in training budgets must materialise if the economy is to benefit.

Jessica Rolf, of the CIPD, said that if training budgets don’t increase, current skill shortages could translate into wage inflation, leading to adverse implications for interest rates, growth and the economy as a whole.

“Economic uncertainty has led to a ‘wait and see’ approach to investment in training, but there is a danger that employers have not invested nearly enough in anticipation of impending skills deficiencies.

“A failure to invest now could leave employers in many sectors short of skilled labour, or needing to offer unsustainable salaries in order to fill vacancies for skilled workers,” she said.