TESCO boss Terry Leahy has backed Southampton MP John Denham's call for businesses to support apprenticeships.

Speaking at a London event the pair told retail leaders that business involvement in apprenticeships is key to raising a skilled workforce and increasing the country's prosperity.

The speeches at The Royal Exchange came in the wake of the Government's announcement last Thursday that seven-and-a-half-million training places are to be created to boost skills in the the UK workforce and that there will be 120,000 new apprenticeships for the under 25s and 30,000 places for older workers.

Mr Denham, pictured left, secretary of state for innovation, universities and skills, praised the retail industry for successfully using apprenticeships.

He said: "This basic model of training is one of the oldest and most successful. It's about learning in the workplace and what the work apprentices do is directly relevant to what they will do in the future.

"Apprenticeships are one of the things we see as key to our competitiveness and prosperity."

Sir Terry Leahy said: "I am a huge fan of apprenticeships because I have seen what they can to for individuals and also what they have done for my business.

"The apprenticeship is not a box-ticking, CSR exercise.

"Retention rates are very high compared to non-apprentice staff and I want them to work for us."