Chancellor Gordon Brown has outlined a scheme in which young people would receive appropriate academic or vocational training, which could benefit both large and small businesses in the long-term.

Mr Brown told BBC Radio 4's The World at One programme that the government would aim to give children qualifications that "should be best fitted for the needs of the modern economy".

To this end, he suggested a larger investment in vocational skills, saying: "I've just been visiting a college today and actually I've been meeting these very young people who are in the college doing practical skills, building, plumbing, electricians, enjoying it very much, seeing this as a route to the future.

"What was amazing was how many of them wanted to start their own business, they wanted to become entrepreneurs in themselves. Now, we have got to respond to their practical and vocational needs."

Apprenticeships will help young people work out their future paths, he added.

Mr Brown recently revealed that he is writing a book about Britain's unsung heroes.