The recent Government White Paper on pensions has not surprisingly encouraged a range of strong opinion. Whilst all welcome the move to finally address the pension issue, others have expressed concern over the effects on businesses.
The CBI has expressed disappointment at the proposed compulsory employer contributions, calling for further Government assistance. Sir Digby Jones, CBI Director-General, explained: "Compulsion will cost employers £2.3 billion and they will need help in managing this burden. At the very least the Government must commit to a package of financial support for small firms to help them adjust and absorb the additional costs."
The Forum of Private Business has been particularly critical, accusing the Government of not having the courage of its convictions. Expressing fears that employers are to foot the bill for the pensions black hole, Nick Goulding, Group Chief Executive, FPB, commenting on 'a longer phasing-in period for smaller businesses' said: "This is a half hearted attempt to appease those companies that will be hardest hit. Small firms are left with the knowledge that they will be hit by an employment tax, but with the uncertainty of not knowing when it will come into force."
Nick continued, warning that the Government "are hoping that small businesses won't notice the impact if they drag their heals in introducing it."
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.