Pictured above: Samantha Haines

The new Bribery Act should not put off firms from hosting clients at Stratford races or a performance by the Royal Shakespeare Company.

That is the good news for those who enjoy being wined and dined.

But Samantha Haines, a solicitor and compliance officer at Stratford-upon-Avon law firm Lodders, said companies needed to prepare for the changes which come into force on July 1.

She stressed: "The Act does not say you can't entertain people or provide hospitality.

"Indeed, in recently issued guidance the Government has made this explicit, stating that companies can continue with 'bona fide hospitality, promotional or other business expenditure'.

"What matters is whether what you provide is proportionate and reasonable - if so you are very unlikely to fall foul of the Act. The authorities would only investigate where the hospitality appears excessive."

And Ms Haines pointed out how the guidance specifically stated that "you can continue to provide tickets to sporting events, take clients to dinner, offer gifts to clients as a reflection of your good relations, or pay for reasonable travel expenses in order to demonstrate your goods or services to clients, if that is reasonable and proportionate for your business".

Noting the Government had put back implementation from an original plan for April - to provide the SME community with a more realistic timescale to get to grips with the new rules - and had as a result delayed issuing the guidance, Ms Haines said the general consensus was that the Government had now acted to explain the nuances of the Act and calmed fears.

"It has clarified a number of areas such as issues surrounding the supply chain, but firms must have 'adequate procedures' in place to prevent bribery.

"What is really important is that businesses now use the weeks ahead of implementation to revise their anti-bribery policies.

"So long as the authorities take a commonsense approach to enforcement, ensuring it is reasonable and risk-based, most firms will be able to rest easy. In such circumstances the Act should not undermine UK competitiveness."

Ms Haines said the general state of preparation for the Act was mixed.

Some businesses were totally unaware of its imminent arrival - it had not even registered on their radar. Others, particular those also coping with associated US legislation, had already prepared and were doing their best to comply. And there were many firms somewhere in-between.

"My advice to business is not to sit on your hands. Be aware that the Act is coming and think about what you need to do.

"For many, three months is not a long time to put plans and procedures in place, and organise training for staff," she said.

Several new offences will be introduced under the Act including a corporate offence for failing to prevent bribery by people working on behalf of a business, and a rise in the maximum penalty for individuals found guilty of bribery from seven to ten years' imprisonment, with an unlimited fine.

For more information about Lodders, please visit their website here: www.lodders.co.uk