Monday Motivation: The Enterprise Bill receives Royal Assent

3 minute read time.

On 4 May, the Enterprise Bill received Royal Assent and became law. We look at the elements it contains and what that could mean for your business.

In the news, 370,000 business owners are planning to close their businesses in the next five years, and jobseeking reaches a two-year high.

Top news stories

UK small businesses should benefit from new Enterprise Act

The Act has now become law and will introduce a small business commissioner to tackle late payments and cut red tape by £10 billion.

Hundreds of thousands of UK small businesses under threat

An estimated 370,000 business owners seeking to shut up shop within the next five years because of the burden of red tape and bureaucracy. 

Smallest businesses disgruntled with government

New research has found that only 14% of micro-businesses are satisfied with their treatment by the Conservative government.

Small business should prioritise cyber security

In 2012, there were 300 times more cyber attacks on small businesses than in 2011, and since then, the numbers have been rising year-on-year.

Jobseeking hits two-year high as workplace satisfaction falls

However, other research also shows that fewer businesses intend to hire in the next six months.

Key dates for your diary

30 May: Bank holiday

31 May: Human Trafficking and Exploitation (Scotland) Act 2015 (Commencement No.1 and Transitory Provisions) Regulations 2016 come into force

The Enterprise Act: are you ready?

There was much interest when business secretary Sajid Javid announced the Enterprise Bill last year. The bill included a range of measures to support small businesses, from a conciliation service to help with disputes over late payments to reforms to business rates appeals.

Now that Bill has received Royal Assent, we look again at the detail and what it could mean for your business:

What’s changing?

The new Act introduces the following measures:

  • A small business commissioner: One of the most anticipated changes was the introduction of a small business commissioner who could help small firms resolve issues such as late payments. This would include assisting small businesses who have issues when dealing with large corporations by offering a mediation service and aiming to change the culture of late payments.
  • A £10 billion deregulation target: The Act continues to work towards cutting red tape by extending the Business Impact Target to include the actions of national regulators and by working to reduce regulatory burdens on businesses.
  • Extension of the Primary Authority scheme: This sets out to make it easier for small businesses to get consistent, accessible advice from local authorities.
  • An Institute for Apprenticeships: This is one of several changes which aim to increase the number of apprenticeships to 3 million by 2020. The Institute will be led by employers and will monitor the quality of apprenticeships and ensure they meet the needs of businesses. The Act also introduces a statutory definition of an apprenticeship to ensure consistency.
  • A legal obligation for insurers to pay claims to businesses within a reasonable time: This addendum to the Insurance Act 2015 includes the right to sue for damages if the business has suffered financial loss because of a late payment of an insurance claim.
  • Reformation of the business rates appeals system: The new appeal system will have three stages: “check, challenge, appeal”. This is just one of the changes around business rates, which aim to make the system easier and more transparent, and to ensure valuations are correct.
  • Enhancement to shop workers’ rights to opt out of working on Sundays: By amending the Employment Rights Act 1996, employees in larger stores will only need to give their employer one month’s notice to opt-out from Sunday working, rather than three. However, three month’s notice will remain in place for those working in smaller businesses.

When does it happen?

Some of the changes will start automatically, now the Act is law. For others, there will need to be Regulations to introduce the changes. Full details can be found on the government’s website.