This report provides analysis from a major survey of employers across the UK, exploring their experiences and perceptions of key aspects of the skills system across the UK. This is an important platform of evidence for the newly formed UK Commission for Employment and Skills in delivering its remit to raise UK prosperity and opportunity by improving employment and skills. The survey covers: Skill challenges experienced by employers; Training practices; Wider high performance working practices; Perceptions of vocational qualifications (this aspect was included for the first time in this survey to provide data for the evaluation of the UK Vocational Qualification Reform, Programme); Perceptions of Sector Skills Councils. The survey was conducted between December 2007 and February 2008, before the economic downturn began to bite in the UK. It is important to view the results of the survey in this context.