Small Business, Enterprise and Employment Act 2015

The Small Business, Enterprise and Employment Act 2015, also referred to as SBEE,[1] received Royal Assent in March 2015.[2] Its contents include regulatory reform (part 2), public sector procurement (part 3) and company director disqualification issues (part 9).

Small Business, Enterprise and Employment Act 2015
Act of Parliament
Parliament of the United Kingdom
Long titleAn Act to make provision about improved access to finance for businesses and individuals; to make provision about regulatory provisions relating to business and certain voluntary and community bodies; to make provision about the exercise of procurement functions by certain public authorities; to make provision for the creation of a Pubs Code and Adjudicator for the regulation of dealings by pub-owning businesses with their tied pub tenants; to make provision about the regulation of the provision of childcare; to make provision about information relating to the evaluation of education; to make provision about the regulation of companies; to make provision about company filing requirements; to make provision about the disqualification from appointments relating to companies; to make provision about insolvency; to make provision about the law relating to employment; and for connected purposes.
Citation2015 c. 26
Territorial extent United Kingdom
Dates
Royal assent26 March 2015
Status: Amended
Text of statute as originally enacted
Text of the Small Business, Enterprise and Employment Act 2015 as in force today (including any amendments) within the United Kingdom, from legislation.gov.uk.

Business impact target

Part 2 contained provision for the government to publish a "business impact target", which is

a target for the Government in respect of the economic impact on business activities of qualifying regulatory provisions.[3]

Statutory guidance on this duty was published in January 2019.[4]

The relevant legislative provisions, namely section 21 to 27 of the 2015 Act were repealed and the business impact target itself was abolished by the Retained EU Law (Revocation and Reform) Act 2023.[5]

Public sector procurement

Part 3 concerns powers to make further regulations regarding public sector procurement, including processes for entering into contracts and contract management (section 39) and investigations into procurement functions (section 40). One of the particular objectives underlying potential regulations would be to ensure that procurement functions are exercised in an efficient and timely manner.[6]

Examples of public sector purchasing practices identified in a Cabinet Office consultation regarding the proposed legislation in 2014, before it was enacted, included over-complicating requirements and 'gold-plating' specifications, being over-prescriptive for lower value procurements, complex tender documentation, and making inappropriate use of framework agreements when they can be a barrier for small businesses, and internal decision making procedures.[7]

Company directors

On 1 October 2015, Part 9 of the Act came into force,[8] which amended the Company Directors Disqualification Act 1986 to introduce:

  • inclusion of relevant foreign offences as grounds for disqualification (s. 104)
  • extension of the régime to persons instructing unfit directors of insolvent companies (s. 105)
  • revision of the procedure for determining the unfitness of directors and shadow directors (s. 106)
  • requirements for official receivers, liquidators, administrators and administrative receivers to report to the Secretary of State on the conduct of each person who was a director of a company on the insolvency date or within the three years before (s. 107)
  • provision for compensation orders and undertakings on persons who are subject to disqualification orders or undertakings, where the person's conduct as a director caused loss to one or more creditors during the time he was a director of an insolvent company (s. 110)

References
  1. UK Government, Small Business, Enterprise and Employment (SBEE) Act, published 25 June 2014, accessed 2 July 2021
  2. "Small Business, Enterprise and Employment Act 2015", legislation.gov.uk, The National Archives, 2015 c. 26
  3. Small Business, Enterprise and Employment Act 2015, section 21, accessed 5 February 2023
  4. Department for Business, Energy & Industrial Strategy, Business Impact Target Statutory Guidance, published January 2019, accessed 5 February 2023
  5. "Retained EU Law (Revocation and Reform) Act 2023: Section 18", legislation.gov.uk, The National Archives, 29 June 2023, 2023 c. 28 (s. 18), retrieved 1 September 2023
  6. UK Legislation, Small Business, Enterprise and Employment Act 2015, section 39(5)(a)
  7. Cabinet Office, Small Business, Enterprise and Employment Bill. Reforms to public procurement – analysis of responses to consultation: Question 3, accessed 29 August 2021
  8. "The Small Business, Enterprise and Employment Act 2015 (Commencement No. 2 and Transitional Provisions) Regulations 2015", legislation.gov.uk, The National Archives, SI 2015/1689


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