Business leaders in Oxfordshire have called for a radical overhaul of the education system, despite record levels of exam success.

The Oxfordshire Chamber of Commerce wants the shake-up to ensure businesses and students alike are given the best possible chance of economic success.

Chamber policy executive Claire Prosser said: "Although we congratulate students who have worked hard, there is continued dissatisfaction within the business community that the current education system fails to provide young people with the skills they need for the workplace.

"Students may very well have top grades, but the problem lies in the fact that young people still remain ill-equipped for the world of work."

The Oxford branch of the Federation of Small Businesses agrees with the Chamber report.

Chairman Barry Wheatley said: "We need to have more vocational skills taught at school - not everyone can study for a degree.

"Instead, practical skills should be taught to a high level."

But the Chamber's findings have been disputed by one small Oxfordshire business.

Malcolm Newdick, manging director of Riverbank IT management in Little Haseley, said: "It's easy to knock the education system and to look back through rose-tinted spectacles at your own youth.

"But our own business experience has been different. One of our people came for a fortnight's work experience, then worked one day a week for us and now he's a full-time employee, who is a product specialist we are sponsoring through college."

The Chamber wants to see a switch from traditional GCSEs and A-levels to the baccalaureate system which is used internationally and offers a broader base of teaching across a wide range of subjects.

Ms Prosser said: "The UK needs a modern system such as the baccalaureate system, where students are offered a breadth of study with vocational and work based achievements being encouraged and equally respected.

"This system would help ensure our young people have the opportunity to learn in ways that motivate and engage them."