- One fifth of UK’s festive spend destined for small businesses
- Food, gifts, alcohol, clothing and nights out top the nation’s spending plans
- 84 per cent say backing small business is important with 95 per cent feeling they add value locally
One fifth (22 per cent) of the nation’s seasonal spending pot could go to small businesses this year, representing £5.3 billion in potential gains for this vital segment of the British economy and an estimated 19 per cent nominal uplift on projected spend seen in 2024.
According to new data from the Small Business Saturday campaign, over £23 billion could be spent in total across the festive season, representing a nominal 16 per cent year-on-year spending rise. The UK households are expected to spend £824 on celebrations on average, 8 per cent more than last year.
Over a quarter (28 per cent) of Brits expect to spend more on Christmas this year, with the top areas of priorities including food (78 per cent), gifts (71 per cent), alcohol (53 per cent), clothing (47 per cent) and nights out (46 per cent). One fifth of households (22 per cent) also plan to treat themselves to holidays.
Younger people aged between 25-34 will be spending the most over the season, with plans to spend an average of £1083.
As the Small Business Saturday campaign kicks off, organisers are issuing their annual call for the nation to support and spend with small businesses on 6 December and throughout the crucial ‘peak’ trading season, which is essential for sustaining many small businesses throughout the year.
“It is promising to see positive economic signs ahead of this year’s critical festive season. This bigger seasonal spending pot offers an incredible opportunity to boost the UK’s amazing businesses,” says Michelle Ovens CBE, director of Small Business Saturday UK.
“Despite ongoing challenges, small businesses have experienced a period of relative stability this year. Public support can make all the difference in helping them finally turn a corner as the year ends – especially with Black Friday and Cyber Monday on the horizon, as small firms can really struggle to keep up with deep discounting events.
"It is vital the nation gets behind our favourite small businesses so we can unleash their power in supercharging the economy next year and delivering immeasurable wider value across society and our local communities.”
Encouragingly public support for small businesses continues to stay strong, with four in five people (84 per cent) thinking it is important to support small businesses and 95% believing they add value to the local economy.
This comes as the number of small businesses rose to 5.6 million for the first time since 2020, after a series of falls in the UK’s small business population since the pandemic.
Small Business Saturday came to the UK in 2013 and is backed by principal supporter, American Express, which founded the campaign in the US in 2010.
Over the time it has been running in the UK, the campaign has seen a growth in public support for small businesses with billions of pounds spent with small firms on Small Business Saturday.
Last year over 10 million Brits shopped small on Small Business Saturday, according to American Express, with a collective £634m spent on the day itself in-store and online in 2024, and average spend per person on the day rising to a level not seen since 2020.
Dan Edelman, General Manager, UK Merchant Services at American Express, said: “It’s positive to see the attraction of spending with small businesses remains strong among the public, especially with the festive season fast approaching.
"American Express is proud of its long-standing support of Small Business Saturday, a vital campaign encouraging the nation to shop small, whatever their budget.”