UK urges support for SMEs on Small Business Saturday
If you’re out on the high street today, you’ll hear a clear message: shop local. The UK government is asking people to back Small Business Saturday on Saturday 6 December 2025, according to the Department for Business and Trade.
Why this matters is simple. Officials say there are 5.7 million small businesses employing around 60% of the workforce and generating £2.8 trillion in turnover, with festive spending forecast to rise 19% and bring a £5 billion boost for SMEs.
When we talk about small businesses, we mean the family shop that knows your name, the café that gives students a quiet corner to revise, the local plumber who turns up when the boiler fails, and the start-ups building tomorrow’s firms. They pay wages near you, sponsor school teams and keep town centres lively.
Alongside the day itself, ministers have launched Backing Your Business and set out a Small Business Plan promising the toughest late‑payment reforms in 25 years. They say that if SMEs grow by one percentage point a year, the UK could add £320 billion by 2030, with a consultation response due in the new year.
Late payment sounds dry, but it’s the difference between ordering stock and cutting shifts. Picture a bakery that invoices a large client on 1 November with 30‑day terms; if the payment lands in mid‑January instead, staff hours, rent and suppliers all feel the squeeze.
Today’s voices are clear. Business Secretary Peter Kyle has urged people to support independent shops and tradespeople, while Michelle Ovens of Small Business Saturday UK points to research with American Express: 95% say small firms add value locally and 84% say the nation should support them.
What this means for you is concrete. Choosing a present from a local maker rather than a giant marketplace keeps more of that money nearby. It helps owners commit to extra hours for part‑time staff, pay an apprentice, or keep a store open late in December.
A quick media‑literacy check helps here. Today’s numbers come from a government press release; they’re official claims and should be tested against what happens next. The key questions for January are simple: do big buyers pay on time, and do small firms feel the difference?
If you buy on account for a club, charity or department at work, you can help right now by paying invoices promptly. Thirty days should mean thirty days. For a small firm, cash arriving on time covers wages and VAT without resorting to costly credit.
For students and teachers, here’s a classroom task you can run this week. Pick three businesses on your street and ask how long they wait to be paid. Map the answers and discuss what would change if that average wait fell by two weeks.
If you’re thinking of starting up, ministers also point to finance: a £4 billion package including £1 billion for 69,000 Start‑Up Loans with mentoring, and £3 billion for the British Business Bank to widen lending via its ENABLE programme.
The real test of Small Business Saturday will be felt after the tills stop ringing. Do invoices clear faster, does cashflow improve, and does that free up money to train, hire and invest on your street? We’ll keep following the policy detail into the new year.