The scale bar won't work on my map when I try to insert one, is there a way to define a scale manually?
Map elements—Help | ArcGIS for Desktop did you follow the help topic?
Yes, I looked at that and tried changing the display units etc. When I put a scale bar on the map it is not right, it is much too small of a distance.
I suspect you need to check your data and your data frame units before you worry about the layout view
Specifying a coordinate system—Help | ArcGIS for Desktop 0.016 miles sound like you have decimal degree data and no coordinate system defined somewhere
All my data is defined as British National Grid
Perhaps you could nudge the thread to a successful conclusion by reporting the coordinate system of the data frame, the units used and maybe even a screen grab of the legend. Strangely 0.0016 * 5260 is 8 feet which probably isn't your desired unit but 0.0016 is about 114 meters at about latitude 50. So the 0.0016 is in some unit that has reflects the units defined somewhere.
Please elaborate: "The scale bar won't work on my map"
An area which I know is miles across comes up as 0.0016 miles, so I need to define it myself in some way?
Do you have multiple data frames, and if so, is the one for your scale bar activated?
Just the one data frame