Commenting on press reports that Lord Adair Turner, Chairman of the Pension Commission, has acknowledged small business concerns over compulsory pension contributions, David Frost, Director General of the British Chambers of Commerce (BCC), said:

"We are pleased that Lord Turner has agreed with our concerns about the cost of his compulsory pension contribution proposals on small businesses, by suggesting some form of subsidy".

"We remain disappointed that employers would be expected to pay into the so-called ‘National Pensions Savings Scheme’ (SPSS) alongside employees".

"Small firms would be particularly badly hit, and businesses continue to tell us that they would have no option but to freeze salaries and much needed investment and possibly lay-off staff".

"Compulsory pension contributions would be bad for small businesses, their employees and the UK economy as a whole especially given rising costs of employment".

"The administration of this scheme remains a major worry. We have concerns that small firms in particular will find this a real burden, especially for those who are already struggling to cope with the demands that the already complex payroll system places on them".

The British Chambers of Commerce have actively campaigned against compulsory contributions and took business concerns direct to Chancellor Gordon Brown and Lord Turner.