The Chancellor is expected to tackle the UK's widening skills gap when he presents the Budget on Wednesday.

For the first time students who choose a technical education will be offered maintenance loans as part of a £500 million plan, it is reported in the Guardian newspaper.

The Chancellor Philip Hammond wants to elevate technical education to the same status as the academic route through university.

The UK is lagging behind many nations when it comes to training in skills and this is reflected in poor levels of productivity.

Carolyn Fairbairn, Director-General of the business organisation, the CBI, (pictured)  said: "Businesses are delighted by the Government's announcements, which they and the CBI have long been calling for. Increasing the number of teaching hours for technical subjects is fundamental to delivering world class training for our young people in every part of the UK.

"There has never been a more important time to address the UK's skills shortages. Investment in skills by employers and the Government, working together in partnership, are the key to giving young people the opportunities they need to succeed.

"And with the majority of people who will be working in 2030 already in the workforce now, the proposed focus on adult skills provision will put this type of training on the right path to major and necessary improvement. This will be very important in the face of fast-changing economics and technology."