THE Wessex branch of the Federation of Small Businesses is warning Hampshire firms of the challenge of new pension rules.

From Monday June 1 thousands of Hampshire businesses with fewer than 30 employees will be faced with the Government’s new pension rules.

These smaller firms now reach their staging date to automatically enrol their employees in a workplace pension scheme.

The FSB is encouraging businesses to make sure they are aware of this important milestone and understand what they need to do to comply.

The FSB wants the Government to continue the support for small businesses to meet the challenge of auto-enrolment.

Neil Eames, Wessex development manager for the FSB, said: “Auto-enrolment for large and medium sized businesses has been a success so far. However, the extension of auto-enrolment to hundreds of thousands of small businesses presents a major challenge.

Mr Eames added: "Awareness of the impending changes has picked up, but many have still yet to put into place plans to meet their duties.

"Small business owners are not pension experts and a significant number will not have any staff saving into an existing workplace pension scheme.

"These businesses require a clear and simple process, and readily available impartial advice and support.

Compliance with auto-enrolment must be low cost and entail minimal administrative burden.

"We still remain concerned that this won’t be the case for many small employers, and that many will face additional administrative as well as payroll costs.

"It is crucially important that businesses deal with this sooner, and do not leave it until the last minute.”

In the Queen’s Speech the Government made clear its intention to support small business by cutting the burden of regulation.

Small businesses welcome this objective, citing reduction of burdensome regulation as their top priority for Government over the coming parliament.

Top ten issues small businesses want new Government to focus on in next five years:

1. Reduce regulatory burden (53 per cent)

2. Introduce a more simplified tax system (51 per cent)

3. Reform business rates (44 per cent)

4. Improve the employability skills of young people (41 per cent)

5. Deliver improved broadband / mobile connectivity (39 per cent)

6. Help UK small businesses to create more jobs (34 per cent)

7. Tackle late payments (33 per cent)

8. Lower energy costs for businesses (30 per cent)

9. Ensure better access to finance (28 per cent)

10. Increase investment in infrastructure (26 per cent)

The Wessex Region is the largest region of The FSB and covers Dorset, Hampshire and the Isle of Wight. It represents around 10,000 members.