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According to the CII, the financial services industry is being dogged by a shortage of skills and limiting training to save money in the short-term could be damaging to the sector in the long-run.

"In this period of economic instability it is vital that we do not take our eye off the skills issue, tempting though that may be. Cuts to training budgets in order to make a quick saving will in the end prove to be a false economy," Hunt said.

In its second annual skills survey published today (9 May), the CII found that skills shortages in the financial services sector actually appear to be worsening.

Of the 3,511 employers who responded to the survey, three quarters reported shortages of technical skills. This figure represents a 5 per cent increase on 2007.

The CII said the issue had become so critical that it was now on the agenda in four out of five boardrooms across the country.

Employers felt that nearly two-thirds (61 per cent) of graduates struggled with basic skills such as grammar and numeracy and over half the employers surveyed (57 per cent) accused the education system of failing to meet the needs of the industry.

Hunt said: "The results of this survey provide a wake up call that we all need to play an active part in raising skill levels.

"The UK financial services industry is world renowned for its commitment to improving the skill levels of its staff. Yet we cannot be complacent and must continue to commit time and resources to training and development if we are to remain competitive in the face of intense global competition."

Hunt added that employers, individuals and institutions like the CII, the Financial Services Skills Council and the government needed to continue to work together to ensure that the industry's needs are being met.

The CII recently announced the introduction of an Islamic insurance module, which is to launch in September. (See story.)