The dispute, which revolved around the governance of the Office of Fair Trading, was resolved after a compromise was reached with opposition MPs.

Hewitt said: 'The Enterprise Act is good news for business, consumers and the economy. It will open up markets, increasing competitive pressures.'

Furthermore, she said, the Act would help give 'entrepreneurs who failed honestly' a second chance.

The Acts provisions on corporate insolvency and the abolition of Crown preference will commence early in the 2003 financial year, while reforms to the Insolvency Service's financial regime will come into force in 2004.