Normally minor acts of misconduct can be dealt with informally and sometimes a quiet word will have the effect you are looking for. It would also give your employee an opportunity to bring to your attention why they are always late; perhaps they are having temporary transport problems which is making them late.
You would not be obliged to make a change to their start time but if you could agree to be flexible for a specified period of time, it may help them until they can make more permanent arrangements.
If your employee has no reasons for their lateness and after your informal chat their lateness continues, then you should consider invoking your formal disciplinary procedure to deal with the problem.
As an employer, you should have in place a procedure on how you will deal with discipline in the workplace, and your employees should have access to these details so that they understand the implications of discipline within the workplace.
Whilst there are no longer any statutory disciplinary and dismissal procedures in place (these were repealed in April 2009), you should follow the guidelines set out in the ACAS Code of Practice on Discipline.
Please contact me if you do not have a discipline policy in place, or would like your current procedures reviewed to ensure they are up to date.
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