A leading group of accountants say that UK employment will continue its steady path of growth until next summer, in time for the general election.

Research by the Institute of Chartered Accountants in England and Wales (ICAEW) and Grant Thornton shows that nearly 450,000 more people will get jobs in the private sector within the next 12 months.

But the survey also revealed that skills shortages were a growing problem for businesses.

“There is a real concern amongst business owners that they will not be able to recruit employees with the right skills. This is a real threat to the sustainability of the recovery,” said ICAEW chief executive Michael Izza.

The ICAEW business confidence monitor nevertheless hit heights never before seen in its 11-year history. Confidence has risen in each of the last six months, it said.