The UK Government has called on the public to shop locally on Small Business Saturday, which fell on 6 December 2025. In a GOV.UK statement, ministers framed the day as a national celebration of the UK’s 5.7 million small businesses and the entrepreneurs behind them.
According to the same government communication, small firms employ around 60% of the workforce and generate £2.8 trillion in turnover. New data cited by ministers suggests that festive spending could provide a £5 billion uplift for SMEs this season, with expected spending up 19% on last year.
The call to action is paired with the ‘Backing Your Business’ campaign, intended to signpost practical support for sole traders, start-ups, family firms and high street shops. It follows the Small Business Plan, which the Government describes as delivering the strongest reforms to tackle late payments in 25 years and a set of measures to improve access to finance.
Business and Trade Secretary Peter Kyle said the day was a chance to support local high streets and praised the contribution of small firms to communities and the economy. Ahead of the weekend, ministers visited businesses including Stoke-based animation studio Carse and Waterman, Glasgow confectioner Jeavons Toffee and London dog groomers Bow Wow to promote the campaign.
Small Business Saturday UK director Michelle Ovens CBE welcomed the focus on local firms. Referencing research conducted with American Express, she said most people believe small businesses add value to their area, with 95% expressing that view and 84% saying the nation should actively support them.
Beyond the campaign, ministers highlighted a wider policy package. The press notice points to a planned cap on most business rates bill increases at 15% as pandemic-era support unwinds, steps to reduce electricity costs for manufacturing, free apprenticeship training for under‑25s in small businesses, and a package aimed at putting more money in consumers’ pockets through measures such as a £150 energy bill reduction and freezes to rail fares and prescription charges. The Government also cites raising the rate at which small businesses start to pay National Insurance, expanding eligibility for enterprise tax incentives to help fast-growing firms attract investment and talent, and simplifying rules to enable more outdoor dining for hospitality venues.
On late payments, the Government says it has concluded a consultation process and will publish its response in the new year. The reforms are billed as the most comprehensive in a quarter of a century, aimed at improving payment practices for suppliers and strengthening the operating environment for SMEs that rely on predictable cashflow.
Finance access features prominently. The Small Business Plan launched alongside the Business Growth Service with a £4 billion financing package: £1 billion earmarked for start-ups, comprising 69,000 Start Up Loans and associated mentoring, and a further £3 billion to the British Business Bank to support lenders in offering more accessible loans through its ENABLE programme.
Officials also argue that incremental SME growth would deliver macroeconomic gains. The press release states that if small businesses across the UK were to increase output by 1 percentage point annually, this could add £320 billion to the economy by 2030. The combined thrust of late payment reform, targeted finance and moderated business costs is presented as the route to that outcome.
For business owners and finance directors, the immediate implications sit in three areas: cashflow discipline as late payment rules are tightened following the consultation response; cost planning in light of a capped rise in most business rates and potential changes to National Insurance thresholds; and investment decisions linked to Start Up Loans, British Business Bank programmes and expanded enterprise tax incentives. Further operational guidance is expected once the Government sets out the detail of the late payment reforms in the new year, according to the GOV.UK statement.