PM marks Small Business Saturday at Downing Street 2025
Downing Street became a winter high street as independent traders set up stalls for the annual lights switch‑on. The Prime Minister invited NHS staff, military personnel, firefighters, police and community champions to share the moment. Fourteen‑year‑old litter picker Samuel Salamone pressed the button, a neat reminder that local pride often starts with a single volunteer and a pair of gloves.
Small firms shape our daily lives, from corner cafés to creative start‑ups. Small Business Britain reports households are set to spend about £23 billion across Christmas, up 16 per cent year on year. Of that, an estimated £5.3 billion could reach small businesses, a 19 per cent rise. The same research finds strong public support: 84 per cent say it’s important to back small firms and 95 per cent believe they add value locally. Those are big numbers, but they’re also a nudge to turn good intentions into action this weekend.
The Prime Minister’s message was straightforward: when small businesses succeed, high streets feel brighter. The government pitched the showcase as a warm‑up for Small Business Saturday and pointed to measures in Budget 2025 designed to ease bills, speed up investment and open more training routes for young people. We’re going to break those into plain English so you can spot what applies to you or your learners.
Bold step one for many shops and venues is business rates. According to the UK Government, Budget 2025 includes a £4.3 billion support package to cap bill increases for sectors hit hardest by revaluations. In practice, that aims to smooth sharp jumps in your rates bill if your property’s rateable value has climbed. If you teach business or run a micro‑firm, think of this as stabilisers fitted to a wobbly cost line while you plan cash flow.
Budget 2025 also confirms the Annual Investment Allowance at £1 million and introduces a new 40 per cent First Year Allowance for main rate assets. In plain terms: buy qualifying kit-ovens, shop fit‑outs, machinery, IT-and you can deduct a large share of the cost from your profits sooner. A bakery upgrading £80,000 of equipment could write off the full amount under the AIA in year one; if your plans are bigger, the new 40 per cent allowance gives an early tax deduction on top of standard reliefs.
Training sits alongside tax. Ministers say apprenticeships for under‑25s will be fully funded, removing the usual training fee for small employers. Picture a salon taking on a trainee stylist or a garage hiring an apprentice technician: the course costs covered by government can lower the barrier to hiring, while learners earn and build skills on the job. For classrooms, this is a live case study of how policy shapes pathways into work.
There are other moving parts worth noting. Targeted reliefs are aimed at smaller and high street businesses to keep the system competitive. The extended fuel duty cut is meant to hold down the cost of van and lorry journeys-helpful if deliveries or mobile services keep you going. The government also says it has doubled eligibility for enterprise tax incentives so fast‑growing firms can attract investment and talent more easily. Always check the small print and eligibility dates before you budget around a headline.
The people showcased told the story better than any press line. Wakuda, co‑founded by Albert Larter, champions Black‑owned brands and distinctive designs. Candle Wise’s Isabella Beeler crafts scented comfort from Kent. Young Blooms’ Grace Farrimond turns floristry into hands‑on workshops. In Monmouthshire, Rhiannon Metters runs The Halfway at Tal‑Y‑Coed as a pub‑plus-arts, crafts and connection to tackle loneliness. From the Lakes came Grasmere Gingerbread’s rum butter and ginger treats, and Buckinghamshire’s Rumsey’s Handmade Chocolates brought festive indulgence.
Beyond the lights, policy continues. Earlier this year the government set out a Small Business Plan billed as the biggest reform to late payments in 25 years-so invoices get paid on time-alongside moves to improve access to finance and cut red tape for pubs, bars and arts venues. The newly launched Business Growth Service is meant to make it easier for SMEs to find advice without losing hours in admin. If you teach enterprise, this is a chance to discuss why payment terms and cash flow often matter more than profit on paper.
Quick explainer for readers and learners: estimates are not guarantees. The £5–5.3 billion festive boost quoted by Small Business Britain is a projection, and the impact will differ by place and sector. What you can do now is practical: if you run a business, update your holiday hours, check your eligibility for rates support and capital allowances, and speak to your accountant about timing purchases. If you’re a shopper, book early, leave reviews and choose local where you can. Small actions add up-on the high street and in your homework. We’ll be watching how these measures land through the winter.