Hi! I live in the UK too! but I don't have a business yet, I'm on a cake decorating course at the moment.
There is a home bakery up the road from me and I know for a fact that they own two dogs.
Have you seen the new ratings system for catering businesses? you can find out about it here,
Basically the business has an inspection, and is rated 0 to 5, 5 being the best.
The bakery up the road from me has a 5 star rating, even though they have two dogs.
Obviously the area the cakes are baked, decorated and stored would have to be as clean as possible.
Hope that helps