The Institute of Directors has called for radical reform of Britain's education system.

The bosses' organisation called for a greater emphasis on vocational training and a halt to the "proliferation of soft subjects" such as media studies.

In its policy paper, "Education and training: a business blueprint for reform", the IoD also warns that exam standards are slipping, and calls for a return to the mid-1980s standards of O-Levels and A-Levels.

Forum Response: Institute of Directors

Ruth Lea, head of the policy unit at the IoD, told ePolitix.com: "In the recent comprehensive spending review, the chancellor announced huge increases in taxpayers' money for education. Whilst we agree with the emphasis placed on education and the need for better skills by the government, we doubt whether the extra money will deliver significantly improved results without major structural changes."

"Firstly, there needs to be major changes to schools. The current one-size-fits-all GCSE/A-level straightjacket fails too many children and we should be looking to countries such as the Netherlands and Germany in order to develop proper vocational courses.

"Secondly, the current obsession with sending as many young people as possible into Higher Education undermines vocational training by making it appear a 'second best'. This helps no-one, least of all many students who study inappropriate HE courses, and continues to put us at a disadvantage in the international vocational skills league tables. We need more plumbers and fewer media studies graduates.

"Thirdly and relatedly, vocational education and training need much more support with some serious thinking going into how we can achieve a 'parity of esteem' between academic and vocational education."

Forum Response: Association of Teachers and Lecturers

Gwen Evans, deputy general secretary of the Association of Teachers and Lecturers, told ePolitix.com: "The report's distinction between academic HE and vocational work-based training is an inaccurate simplification that appears to forget centuries of HE courses in Law and Medicine.

"It is all too easy for the IoD to suggest restructuring the supply side of the equation. Its members represent the demand side; perhaps they need to put their own house in order and start seriously investing in training. Could the Institute of Directors sponsor the super-plumbers of the future?

"At present we see the operation of a free market with young people and their parents using their purchasing power to go into HE, that is what choice is about. If IoD members are losing out in the competition for able 18 year olds, the remedy may just be in making their offers more competitive rather than seeking public funding for early vocational specialisation".

Forum Response: Professional Association of Teachers

Jean Gemmell, general secretary of the Professional Association of Teachers, told ePolitix.com: "I am sure students, parents and teachers across the country will be saddened and disheartened to read the comments made by Ruth Lea and the Institute of Directors.

"Every year at exam/results time, we see a small, but vociferous, number of people seeking publicity for their view that 'standards have fallen'. Why can't the 'things were better in my day' brigade stop denigrating pupils' achievements and accept that standards can - and have - risen, and that pupils and teachers are working harder than ever to achieve good results?

"If the number of pupils achieving A*-C grade fell, people like Dr Lea would be only too pleased to jump on the bandwagon and complain that standards were falling.

"Greater investment in, and recognition of, vocational education would be welcome, but does the Institute of Directors really wish to return to the 'good old days' when only a small privileged, wealthy elite went to university and when most young people left school with few or no qualifications?

"The IoD is making critical comments about vocational qualifications before the 14-19 Green Paper has even been implemented."

Forum Response: NATFHE

Tom Wilson, head of the universities department at NATFHE, told ePolitix.com: "The comments of the Institute of Directors are uninformed and unlikely to represent their own members. Most studies show that employers are asking for more graduates not fewer.

"As the UK has a poor record of workplace training the IoD would do well to put its own house in order and encourage employers to examine their training provision and their flexibilty for enabling staff to pursue educational opportunities."