The Department for Trade and Industry has commissioned a survey of people from other European countries working in Britain to see how they perceived the language skills of their British colleagues.

Over 60% of the continental workers surveyed found their British colleagues not to have a "satisfactory" grasp of other languages.

Brian Wilson says "we cannot assume that everyone speaks English"

The cause of this was suggested by the 80% of respondents who said that their British colleagues expected everyone else to be able to speak English.

This lack of ability at languages put British businesses at a disadvantage compared to countries such as Germany, the Netherlands and France, said the Trade Minister, Brian Wilson.

"We cannot assume that everyone speaks English and we constantly put ourselves in a position of weakness by not developing language skills."

This was a long-term challenge for the education system, the minister said. But in the short-term he urged businesses to make their own efforts to improve language learning among their staff.

The minister encouraged businesses to use the language learning information that his department made available for free, including a new guide Overcoming Language and Cultural Barriers.

"A little effort to learn about local languages and cultures can go a long way towards gaining a competitive edge in business," said Mr Wilson.

Earlier this week the Education Secretary David Blunkett announced the expansion of the "specialist school" system in England, which will mean an increased number of schools which place a particular emphasis on teaching languages - along with other schools specialising in areas such as technology and the arts.