Small businesses celebrated as PM brings high street to Downing Street for Christmas switch-on

• PM hosts Christmas market-style showcase at Downing Street, celebrating small firms, frontline workers and community champions at the annual lights switch-on.
• Small businesses are set for a bumper festive season, with spending up 19% on last year – which could provide an extra £5 billion boost.
• Budget 2025 delivered key support, including extended Rates Relief, full funding for under-25 apprenticeships, and wider enterprise tax incentives.

Small businesses from across the UK were celebrated at the annual No10 Christmas lights switch-on this evening, as the PM brings the high street to Downing Street ahead of Small Business Saturday.

Small businesses are the lifeblood of our economy, making up the vast majority of jobs across the country, and serving every community on our high streets, in our markets, as traders and family businesses. Data from Small Business Britain shows they could see a £5 billion boost this Christmas with 19% more spending than last year.

They are being joined by NHS staff, military personnel, firefighters and police to thank them for their service during the busy Christmas period, alongside community champions who represent the very essence of the government's Pride in Place programme – including 14-year-old litter picker Samuel Salamone, who will switch on the lights.

Prime Minister Keir Starmer said:

“Small businesses are the beating heart of our economy and the backbone of our communities.

“This Christmas, we're not just switching on the lights – we are shining a spotlight on the incredible entrepreneurs, traders and family firms that keep our high streets thriving.

“From extending rates relief to funding apprenticeships, this government is backing small businesses every step of the way, because when they succeed, Britain succeeds.”

The showcases take place ahead of Small Business Saturday, which celebrates the UK's much-loved 5.6 million small businesses and encourages the nation to show their support by shopping small.

From artisan food producers to creative retailers, among the businesses who took part were:

• Wakuda – Co-founded by Albert Larter, this retail and textiles brand champions Black-owned businesses and unique designs.
• Candle Wise – Isabella Beeler (Bella) crafts beautiful candles from Kent, perfect for cosy winter nights.
• Young Blooms – Grace Farrimond brings floral artistry to life with wreath-making workshops and seasonal arrangements.
• The Halfway at Tal-Y-Coed – A welcoming pub in Wales run by Rhiannon Metters, tackling isolation and loneliness through arts and crafts sessions for the local community.
• Grasmere Gingerbread – Joanne and Andrew Hunter will bring their award-winning rum butter and ginger-themed treats from the Lake District.
• Rumsey's Handmade Chocolates – A family-run chocolate business led by Kate Rumsey, offering indulgent festive flavours.

Michelle Ovens CBE, Director, Small Business Saturday UK

“The UK's 5.6 million small businesses are absolutely vital to the UK, powering economic growth, bringing tremendous value, heart and soul to communities and innovation and impact across broader society. It is so crucial that the nation shows support for their favourite small firms this Small Business Saturday and beyond. We are so delighted to be at Downing Street ahead of the campaign to celebrate the phenomenal contribution of small businesses. A spotlight like this as the festive season kicks off is such a powerful reminder to the nation to take a moment to support their local small businesses this Saturday.”

Albert Larter, Co-founder of Wakuda, said:

"Being a part of the small business festive market at No.10 is a real honour. It's a great way for us to showcase what we are building at Wakuda and the amazing small businesses within our community. Small businesses play an important role in driving culture and economic growth and opportunities like this help us keep building, keep growing, and keep empowering the community we serve."

Rhiannon Metters, publican at The Halfway in Tal-Y-Coed, Wales, said:

“It has been a fantastic experience to attend this Small Business Showcase and highlight the important role that pubs have in bringing people together and creating human connections.

“From a pint by the fire to wreath-making in the marquee, from the village shop to live music and shared skills, everything we do is about bringing people together, tackling loneliness and social isolation, supporting local makers and giving our little corner of Monmouthshire a place to gather, laugh, learn and belong.”

The festive season is a critical time for small businesses. UK households are expected to spend £23 billion across Christmas – a 16% year-on-year rise. Of this, an estimated £5.3 billion could go to small firms, delivering a much-needed boost of 19% year-on-year growth. Public support remains strong, with 84% of people saying it's important to support small businesses, and 95% believing they add local value.

This celebration comes as the Government sets out new measures in Budget 2025 to back British business:

• A £4.3 billion business rates support package to cap bill increases for sectors hit hardest by revaluations.
• Continued Annual Investment Allowance of £1 million and a new 40% First Year Allowance for main rate assets – giving businesses strong incentives to invest.
• Targeted reliefs for smaller businesses and high street firms, ensuring the system is fair and competitive.
• Extended fuel duty cut to keep van and lorry journeys affordable for businesses.
• Doubling eligibility for enterprise tax incentives to help fast-growing firms attract investment and talent.

It also comes after the government launched its flagship Small Business Plan earlier this year, which committed to the biggest reforms to late payments in 25 years to make sure businesses get paid on time. This included decisive action to boost access to finance for entrepreneurs, address the impact of ‘personal guarantees' on small business owners, and slash red tape to boost our pubs, bars and arts venues.   

As part of the plan, the government also launched Business Growth Service last week which makes it easier for SMEs to get the help they need, saving them time and money to spend growing their business.