BUSINESS leaders are threatening to boycott the Tomlinson report because they fear that its proposals will do nothing to improve basic standards of literacy and numeracy.

Mike Tomlinson will today set out plans for the biggest reform of school-age qualifications in 60 years, abolishing GCSEs and A levels within a decade and replacing them with a diploma for all students aged 14 to 19.

Charles Clarke, the Education Secretary, is expected to endorse the plans, but the Confederation of British Industry, which fears that standards could even decline, cautioned yesterday that it would withhold support unless its concerns are answered.

“The CBI wants an action plan to tackle literacy and numeracy,” a spokesman said. “We will tell the Government, ‘We will work with you, as long as there is such a plan’. This is our problem, to what extent will your proposals deal with it?’” With 60 per cent of teenagers leaving school without grade Cs in GCSE maths and English, a third of employers are forced to provide basic lessons in literacy and numer-acy for young staff.

John Cridland, the deputy director-general of the CBI, said that, while members wanted radical action, they “will take some convincing that a major shake-up of exams will resolve the issue.

“Firms want to know exactly how changing qualifications would raise standards in maths and English. Would it ensure the curriculum gives sufficient priority to literacy and numeracy? Would it improve teacher training so that teachers have the skills to deal with the issue?” he asked. “We need reassurance that such a radical shake-up would not divert energy and attention from these urgent tasks which we could be getting on with now.”

When Mr Clarke set up the inquiry last spring he insisted that the reforms could not work unless schools, business and universities accepted them.

Unions cautioned that ministers would be making a “fundamental mistake” unless they backed the whole package.

David Hart, the general secretary of the National Association of Head Teachers, said: “What I want from the Government is strong support for the Tomlinson report — I don’t want any fudge.”

Mr Tomlinson, a former Chief Inspector of Schools in England, will call for a diploma at four levels of difficulty to replace GCSEs and A levels by 2014. The reform would also spell the end of school league tables, a move that will delight most teachers’ unions.

Students would progress at their own pace, earning credits towards the certificate, with the brightest encouraged to pursue the hardest courses.

In the short term, the most able would be challenged by two new A-level grades likely to be called A+ and A++ and achieved by integrating the Advanced Extension Award into the main exam papers.

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There are also complaints of too many vocational courses at present providing qualifications that are not acceptable to some businesses

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