More people have been completing their studies

The Learning and Skills Council said the success rate in colleges was now 72% - meeting a government target two years early.

This reflected better pass rates, but also the fact that fewer students were dropping out: 16% in 2003-04.

Pass rates among those on work-based courses were also better, rising from 41% to 46% year-on-year.

This included people doing apprenticeships or National Vocational Qualifications (NVQs).

Across the board

The statistics were published by Learning and Skills Council, which funds post-16 training.

Its national director of learning, Caroline Neville, said it was encouraging to see the greatest improvement had been in Level 1 and 2 qualifications - basic skills and GCSEs.

"It is also welcome news to see that improvements were recorded across the board with success rates increasing regardless of gender, age, ethnic group or type of learning institution."

In general further education and tertiary colleges the "retention rate" rose from 74% in 2001-02 to 80% in 2003-04.

British businesses have complained repeatedly about a skills shortage.

The government says it recognises the problem, and has plans for a network of 12 "skills academies" in different sectors, in partnership with employers.