It is crucial that firms continue to carry out leadership and management training in the current economic climate, according to one industry figure.

Any organisation is only as good as its leadership, points out Steve Crabb, strategic advisor at the Chartered Institute of Personnel and Development.

He explains that it is important that the pipeline of future leaders is not cut off and urges companies to pursue the short-term gains of training in the events of economic turbulence.

"In a lull in the economy, people really are the only thing you can count on and the key to sustainable high performance is to have leaders who clearly communicate," Mr Crabb comments.

He adds that with strong leadership everything else can fall into place.

According to research by the Economic and Social Research Council, employers reported that the main impact of skills gaps was an increase in workload for other staff.