Business and education leaders in Oxfordshire are calling on the Government to scrap its target of getting 50 per cent of young people into university.

The Thames Valley Chamber of Commerce said the drive to get half of all people under 30 into higher education by 2010 would be at the expense of vocational courses, leaving some firms without talented recruits.

The principal of Oxford and Cherwell College has backed the campaign, warning the Government's targets are damaging both businesses and students.

Companies want the benefits of on-the-job training programmes to be emphasised so that school leavers are presented with a full range of options.

The Government has defended its target, saying work-linked foundation degrees would prosper.

Following this year's A-Level results, the University and Colleges Admissions Service said a record number of students had won places at university.

But Gloria Kinghorn, of the Thames Valley chamber's work-based learning division, wants young people to consider all options available to them.

She added: "Companies across the Thames Valley that employ apprentices stand to benefit from increased motivation and commitment from the employee and increased productivity as they develop through their studies."

At the moment, 43 per cent of young people are going into higher education.

Business leaders claim that 42 per cent of businesses in the UK are having difficulties in recruiting skilled staff.

Sally Dicketts, principal of Oxford and Cherwell College, said: "We're urging the Government to reconsider its 50 per cent to university target.

"Companies are crying out for the right calibre of young people to undertake apprenticeships and work based learning. There are the opportunities to earn high salaries by getting these vocational qualifications."

Siemens, which employs almost 700 people at its Eynsham factory and runs an apprentice programme, was more concerned about the number of teenagers who leave school without basic literacy and numeracy skills.

Jack Dixon, 18, has just finished his A-Levels at Oxford and Cherwell College gaining one B and two C grades. He is planning to go into building and construction management through a work-based learning scheme with Oxford construction firm Rok, instead of going to university.

He said: "I don't want to follow a full-time studying route for three years and then have to start at the bottom of the career ladder.

"I'm going to be working four days a week and spending one day a week at college studying a HNC in Building Studies. At the end of the three-year programme I will gain qualifications equivalent to a degree."