THE CBI in the South East has warned that the flaws in the education system are holding back business, after nearly half of GCSE entrants failed to reach the basic levels of competency in the 'three Rs', despite overall GCSE pass rates rising again.

Across England, Wales and Northern Ireland students are celebrating the biggest increase in A*-C grade GCSE pass rates since 1992.

The overall A*-C pass rate rose by two per cent this year to 61.2 per cent, in maths the same pass rate increased by 1.7 per cent to 53.4 per cent - the biggest rise for five years - while the same results in English increased by one percentage point to 60.9 per cent.

The Government has described "competency" in the 'three Rs' is achieving Grade C or above in both English and Maths. This year, 39.1 per cent and 46.6 per cent failed to achieve that competency respectively.

Malcolm Hyde, CBI South East regional director, said: "While we congratulate the students, we have serious concerns that once again it will be business in the region that picks up the bill for bringing school leavers up to the mark in terms of the reading, writing, and arithmetic.

"There is clearly a systemic failure in the education system if approximately half of GCSE entrants have failed to reach the basic levels of competency.

"Being taught how to read, write and add-up was regarded as a fundamental right for all in the 20th century, so why in the 21st century, is the education system of the world's fourth richest economy seemingly unable to deliver?”

The CBI has argued that the system is failing teenagers and the taxpayer, as well as employers, as business has to pay for remedial training for new recruits on top of the taxes they have already paid to fund the education system.

The employers’ organisation has also voiced its concerns over the drop in the number of students taking modern languages. The number of students taking French and German fell by 14.4 per cent and 13.7 per cent respectively.

Mr Hyde added: "Why, when business wants more people to take languages - especially in subjects needed in emerging markets such as China, the states of the former Soviet Union and South America – has the Government removed the requirement for schools to offer a language subject at GCSE?

"Anyone with a foreign language under their belt - whether at GCSE, A Level or as a graduate, will have an immediate advantage in the job market – because they can provide an edge for their company."