Shoppers urged to support small businesses as confidence wobbles
The public is being urged to show support for small businesses as part of an annual event on Saturday, following signs that tax hikes have dented confidence across the sector.
Organisers say Small Business Saturday could provide a “lifeline” for smaller companies in the important run-up to Christmas
The campaign group said the public is expected to direct up to a fifth of its Christmas spending towards independent firms, meaning the small business economy could tap into around £4.4 billion.
Small Business Saturday is an annual campaign with a mission to support and celebrate the UK’s 5.5m small businesses, encouraging people to “shop local” and support small firms in their communities on the day and beyond.
“Small businesses deliver an immeasurable value that goes beyond their economic contribution – they are the heart and soul of our communities, bringing joy and vibrancy to our lives and local areas, as well as delivering essential local services,” said Michelle Ovens, director of Small Business Saturday UK.
“Public support is absolutely vital for boosting small businesses across the UK on Small Business Saturday and beyond.
“Many are facing extended economic challenges, and need greater support and confidence to recover and keep going.”
The event was originally founded by American Express in the United States in 2010, and the credit-card giant remains the principal supporter of the campaign in the UK.
This year’s event comes shortly after the closely-watched S&P’s purchasing managers’ index for the services sector found that business expectations for the year ahead were at their lowest level since December 2022.
The fall in business confidence coincided with the government hiking employers’ national insurance contributions in the Budget, a move which many business groups argue will hit growth as businesses deal with the extra costs.
Chancellor Rachel Reeves said on Saturday: “Small businesses are Britain’s backbone and will drive the government’s mission to kick-start economic growth.
“Under the Tories our high streets were left destitute, with rising crime, empty units and no support for local enterprise.
“This government will revitalise the UK high street, and our commitment to transform business rates will deliver a fairer system that supports investment and provides the long-term stability businesses need.”
Business secretary Jonathan Reynolds added: “In just five months, this Labour government has delivered more for small businesses than the previous Conservative administration managed in 14 years, taking the action small business needs on the things holding them back, like late payments, excessive admin, access to finance and retail crime.
“Labour’s plan for change means investment and reform to support small firms, which will deliver growth and put more money in people’s pockets.”
Additional reporting by PA Media – Alan Jones