The government has called on consumers to “shop local” this Small Business Saturday (6 December), highlighting the vital role that small shops and independents play in powering the UK economy during the busy Christmas period.
The nationwide push forms part of the newly launched Backing Your Business campaign, unveiled just weeks after the government’s flagship Small Business Plan. The plan includes the most significant reforms to tackle late payments in 25 years – designed to help sole traders, start-ups, family firms and high street shops access the support they need to thrive.
According to new data cited by the government, festive support for small firms could generate a £5bn boost for UK SMEs this December, with consumer spend projected to rise 19 per cent on last year.
Business secretary Peter Kyle encouraged shoppers to make the most of their local high streets: “This Small Business Saturday is a great chance to get out to your local high streets and support small businesses. Whether it’s your local shop, tradesperson, or high street retailer, these are the people who work day and night and power our communities and our economy.”
Small businesses remain a cornerstone of the UK retail landscape, employing 60 per cent of the national workforce and generating £2.8 trillion in turnover.
Michelle Ovens, director of Small Business Saturday UK, reinforced the importance of independents at a crucial trading time.
“Small businesses are the nation’s favourite businesses and they are essential to both their communities and the whole economy. Our research with American Express found 95 per cent of people feel small businesses add value to local areas and 84 per cent believe the nation needs to support them. At this crucial time of year for many small firms it is vital that the nation remembers their favourite small businesses and goes out to support them this Small Business Saturday and beyond.”
If small businesses grow by just 1 per cent annually, officials say this could add £320bn to the UK economy by 2030. 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, and average spend per person on the day rising to a level not seen since 2020.
What the government is promising small businesses
Alongside its call for community support, the government outlined a series of measures aimed at improving the trading environment for small firms:
- Tackling late payments with the toughest reforms in 25 years
- £150 off household energy bills, plus frozen rail fares and prescription charges
- NI threshold increases to support small employers
- Electricity price cuts for manufacturing businesses
- Free training for under-25 apprentices in small companies
- 30 hours free childcare to support working parents
- A £4.3bn business rates support package, capping most increases at 15 per cent
- Expanded enterprise tax incentives to help fast-growing companies attract investment
- Reduced red tape to enable pubs and bars to offer more outdoor dining
Earlier this year, the government also launched a £4bn finance package, including £1bn for start-ups through 69,000 Start-Up Loans and mentoring, plus £3bn to the British Business Bank to widen access to small business lending.