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Setting up a business involves complying with a range of legal requirements. Find out which ones apply to you and your new enterprise.

Every business needs to be aware of its obligations under minimum wage and equal pay laws, as well as recent pensions auto-enrolment changes.

What particular regulations do specific types of business (such as a hotel, or a printer, or a taxi firm) need to follow? We explain some of the key legal issues to consider for 200 types of business.

While poor governance can bring serious legal consequences, the law can also protect business owners and managers and help to prevent conflict.

You must comply with legal restrictions on employees' working hours and time off, or risk claims, enforcement action and even prosecution.

The right employment policies are an essential part of effective staff management. Make sure any policy is clear and well communicated to employees.

Whether you want to raise finance, join forces with someone else, buy or sell a business, it pays to be aware of the legal implications.

While sick employees need to be treated fairly, you need to ensure that 'sickness' is not being used as cover for unauthorised absence.

Marketing matters. Marketing drives sales for businesses of all sizes by ensuring that customers think of their brand when they want to buy.

Most pregnant employees are entitled to maternity leave and maternity pay, while new fathers are entitled to paternity leave and paternity pay.

Commercial disputes can prove time-consuming, stressful and expensive, but having robust legal agreements can help to prevent them from occurring.

As well as undermining morale, illegal discrimination can lead to workplace grievances. Employee discrimination is covered by the Equality Act 2010.

Whether your business owns or rents premises, your legal liabilities can be substantial. Commercial property law is complex, but you can avoid common pitfalls.

Home, remote and lone workers are becoming increasingly commonplace. Key issues include communication and how to manage and motivate people remotely.

With information and sound advice, living up to your legal responsibilities to safeguard your employees, customers and visitors need not be difficult or costly.

The right approach to consulting with and providing information to your employees can improve employee motivation and performance.

As information technology continues to evolve, legislation must also change. It affects everything from data protection and online selling to internet policies for employees.

Disciplinary and grievance issues can be a major burden to employers. Putting in place and following the right procedures is essential.

Following the right dismissal and redundancy procedures helps protect your business and minimise the risk of a legal dispute at tribunal.

Intellectual property (IP) isn't solely relevant to larger businesses or those involved in developing innovative new products: all products have IP.

Employment tribunal claims are a worrying prospect for any employer. A tribunal case is a no-win situation – even if the claim is unjustified.

Knowing how and when you plan to sell or relinquish control of your business can help you to make better decisions and achieve the best possible outcome.

From bereavement, wills, inheritance, separation and divorce to selling a house, personal injury and traffic offences, learn more about your personal legal rights.

Small firms still missing out on public sector contracts

13 August 2024

A new report by the British Chambers of Commerce concludes that UK government contracts are "out of reach" for most small businesses.

Only one-fifth of direct procurement spend from the public sector (including central government) went to small businesses in 2023, according to data from the British Chambers of Commerce (BCC).

Now in its second year, the BCC's SME Procurement Tracker, powered by data provider Tussell, measures how well the government is supporting small businesses by doing business with them.

The latest report finds that while absolute public spending directly with SMEs has grown over the past six years, SMEs only made up 20% of overall spending last year. The total value of reported procurement expenditure by the UK government in 2023 was £194.8bn; of this, £39.7 billion was spent by government directly with SMEs last year.

"While it's welcome [that] the value of SME procurement contracts is continuing to increase, government deals remain out of reach for too many businesses. It is vital that public bodies always consider SMEs when tendering contracts." Jonny Haseldine, BCC policy manager.

SMEs win one in three local government contracts

BCC findings show that local government had the highest procurement spend directly with SMEs last year, both as a share of total procurement spend (34%) and in absolute terms (£24.1bn). This compares to 11% (£5.8bn) for central government and 20% for the NHS (worth £8bn to SMEs).

Public sector spend with SMEs varies widely across different sectors. The health and social care SME sector earned £11.9bn in direct public sector revenue in 2023. This accounts for 34% of total public spend in the sector, up from 29% in 2018. £4bn was spent on public sector spending with SMEs in education, training and recruitment.

Within central government, the Department for Culture, Media and Sport (DCMS) spent the highest proportion of its procurement spend directly with SMEs in 2023. DCMS spent 29% of its procurement total (equivalent to £256m) with UK small firms. The Department for Education spent the highest absolute amount directly with SMEs, amounting to £2bn in 2023, or 25% of its total procurement spend.

SMEs need greater access to government contracts

Jonny Haseldine, BCC policy manager, said: "Central government can learn lessons from local authorities who are consistently spending more on SMEs deals. We'd welcome further devolution of decision-making to allow more procurement contracts to be awarded at a local level.

"The Procurement Act coming into force at the end of October has the potential to make the system simpler and more transparent for businesses. In addition, it's crucial we hear more from the new government on their pledge to give SMEs greater access to contracts. Businesses up and down the country want to see a reformed process in which they can properly compete."

Written by Rachel Miller.

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