Bosses in Sussex are concerned at the lack of skilled people to fill vacancies.

An acute shortage of skilled staff has become the No.1 worry for many firms, beating the previous favourite, red tape, into second place.

Now one in five employers say they are dissatisfied with their local skills pool.

Factory owner Alan Mills said it was often the employers who invest most in training who suffer most.

He said: "Training is an expensive business and makes a big hole in the budget of smaller businesses. This often results in firms that don't provide proper training being able to offer a higher wage to people who have been trained by conscientious employers."

These concerns were expressed as a new body took control of the skills agenda in Sussex - with a budget of £116 million.

The Sussex Learning and Skills Council has moved into new offices in central Brighton and plans to implement far-reaching proposals to improve the education and skills of adults in Sussex, giving them the right skills to meet employers' demands.

The 16-strong council, which includes top Sussex business leaders and educationalists, covers both East and West Sussex and Brighton and Hove.

It takes on responsibility for planning and funding all post-16 training, replacing the Further Education Funding Council and Training and Enterprise Councils.

Executive director Henry Ball said: "We are working with schools and colleges to improve the range and quality of post-16 education.

"We will help businesses and training providers to improve vocational training and work in partnership with community activities, aiming to enhance local learning opportunities.

"Our intention is that this important new initiative will encourage everyone over 16 to engage in training and improve their skill levels and opportunities.

"This is very exciting - we're at the threshold of a new learning culture offering opportunity for the entire community."