In an ever more technological age, a shortage of workers with digital skills is still holding firms back, according to a business group.

According to the British Chambers of Commerce (BCC) productivity and growth are being hurt by 'critical' shortages at some companies.

A survey of 1,400 businesses found that most believed digital and computer skills were more important than two years ago.

The report also said the skills shortage was increasing the workload for existing employees and pushing up operating costs.

It comes as research by the Recruitment and Employment Confederation showed an increasing number of employers are finding it difficult to fill white-collar jobs such as those in finance or computing.

Adam Marshall, director-general of the BCC, said: 'The evidence is clear – better digital skills make firms more productive, and a lack of digital skills holds them back.

'Businesses themselves need to do a lot more to tackle the digital skills shortages they face, and their leaders need to be alive to the fact that a failure to tackle this issue will have an impact on their bottom line.'

He added that government had a part to play in ensuring enough people with high-level digital skills were coming into the UK from overseas.