LONDON LEADS UK IN FESTIVE SPENDING AS SMALL FIRMS PREPARE FOR CRITICAL TRADING WEEKEND

Small firms across the UK are preparing for one of the most important trading weekends of the year as new data suggests consumer spending with independent businesses is set to rise sharply during the festive season. The findings come ahead of Small Business Saturday on 6 December, which organisers hope will deliver a vital boost for the country’s 5.6 million small enterprises.

Fresh analysis from Small Business Saturday UK indicates that Christmas spending with small firms could increase by 19% this year to £5.3 billion, offering a welcome uplift for businesses still managing high input costs and tighter margins. Broader festive spending is also expected to climb, with total seasonal expenditure forecast to exceed £23 billion — a 16% nominal rise on last year.

Public sentiment remains firmly in favour of independents. Research commissioned by the campaign and its long-standing supporter American Express shows that 84% of consumers believe it is important to support small firms, while 95% say independents add value to local communities. More than half of people surveyed also have a favourite local business.

Food and drink outlets continue to dominate the public’s preferences. Cafés and coffee shops topped the list of Britain’s favourite small businesses, followed by independent restaurants, takeaways and bakeries. Bars, pubs, hairdressers, convenience stores and bookshops also ranked highly.

London is expected to be a major driver of seasonal activity. Households in the capital plan to spend an average of £1,184 on Christmas this year — the highest in the UK — with over a quarter of their festive outlay anticipated to go to small businesses. Almost half of Londoners say they expect to spend more this Christmas than they did in 2023.

Michelle Ovens CBE, Director of Small Business Saturday UK, urged consumers to turn intention into action. “Small businesses are the nation’s favourites businesses and they are essential to both their communities and the whole UK economy,” she said. “This Small Business Saturday we would love to see everyone go out and support their favourite independents, whether on the high streets or online, and show entrepreneurs the public is backing them all the way.”

The call for support is echoed inside government. Blair McDougall, Minister for Small Business, said: “Small businesses are key to our growth mission — creating jobs, strengthening our communities — which is why I am so pleased to be celebrating their incredible contribution this Small Business Saturday. This Government is backing SMEs with our landmark Plan for Small Business, and I urge the public to do the same by visiting their favourite local shops this weekend.”

For London, the message carries even more weight. Deputy Mayor for Business and Growth, Howard Dawber, said: “Small businesses are essential to our communities and the backbone of London’s economy. I am proud to champion our brilliant small businesses and hope Londoners will support them this weekend, as we continue building a better and fairer London for all.”

Small Business Saturday, founded by American Express in the United States in 2010, has grown into one of the UK’s most recognised grassroots consumer campaigns. American Express remains its principal supporter. Last year more than 10 million Brits shopped with small firms on the day, spending an estimated £634 million in-store and online — the highest average spend per person since 2020.

Dan Edelman, General Manager, UK Merchant Services at American Express, said the human stories behind small enterprises continue to resonate. “Behind every small business is a person — a dreamer, a doer, and someone devoted to serving their community. This research shows how much the public values these individuals and Amex is proud to back them as principal supporter of Small Business Saturday.”

Small businesses across sectors — from hospitality to professional services and online retailers — are preparing for increased footfall and digital traffic. Many plan to offer promotions, host events or collaborate locally to maximise visibility.

For family-run restaurant Shambles in Teddington, community support remains crucial after four decades in operation. Owner Massimo Langella said: “Running a small, family-owned restaurant isn’t for the faint-hearted, but our guests make the hard graft worth it. The public’s support is the reason Shambles has been a local fixture for four decades, weathering everything the world has thrown at us. Small Business Saturday shines an amazing spotlight on what we live every day with our community. We’ll be celebrating it the way we always do… delicious Italian food and proper hospitality.”

Other operators are equally reliant on a strong December. Bharti Radix, Owner of the BloomsYard wine bar group, said: “This is our busiest time of the whole year, sales around this time are crucial to us as small businesses as trends show that sales do tend to drop off in the first part of the new year so sales in December help us to survive! We try to have more products in place for gifting so we’re hoping to sell gift type of items more than usual at this time. This is an exciting time for us – we hope to be as busy as possible and to help spread the festive joy!”

Campaign organisers are encouraging shoppers not only to spend but also to support small firms by leaving positive reviews or recommending independents to friends and family.

More information on Small Business Saturday is available at https://smallbusinesssaturdayuk.com.