Small Business Saturday lands today, 6 December, and the government is asking people to spend locally. Official figures point to 5.7 million small businesses employing around 60% of the workforce and generating £2.8 trillion in turnover across the UK.

Ministers say that shift could be meaningful. New government data suggests a £5 billion boost for SMEs this festive season if shoppers back independents, with spending forecast to be 19% higher than last year. For many firms, December cash flow sets the tone for the first quarter.

Business Secretary Peter Kyle urged people to visit their high streets and back the entrepreneurs who work long hours to keep local economies moving. In the run‑up, ministers highlighted real‑world examples - from Stoke’s animation studio Carse and Waterman, to Glasgow’s Jeavons Toffee, to London dog groomer Bow Wow.

The push sits alongside Backing Your Business, a new campaign designed to signpost support from sole traders to family firms. It builds on the Small Business Plan, launched earlier this year with the Business Growth Service, and proposes the strongest late payment reforms in 25 years, according to the Department for Business and Trade.

Public sentiment appears supportive. Research by Small Business Saturday UK with American Express found 95% of people believe small businesses add value to their local area, and 84% say the nation should support them - a reminder that community loyalty remains a competitive advantage when wallets are tight.

Cash flow is the practical concern. Late invoices often collide with rent, payroll and stock outlays just as demand peaks. As a simple illustration, a busy café that invoices £20,000 in December on 30‑day terms may not see the cash until early January - or later if payment slips - leaving a short‑term funding gap when costs fall due.

Policy measures aim to help at both ends. For households, the government points to £150 off energy bills this year alongside freezes on rail fares and prescription charges - moves officials argue can free up discretionary spending through the Christmas period.

For businesses, ministers say the point at which small firms start paying National Insurance is being raised, electricity prices reduced for thousands of manufacturers, and training for under‑25 apprenticeships made free for small employers. Expanded 30 hours’ free childcare - estimated to save families up to £7,500 a year - should support workforce participation.

On costs, business rates remain sensitive. As pandemic‑era support tapers, the Treasury has set a £4.3 billion package that caps most property bill increases at 15%. It slows the rise rather than reverses it, so finance teams should still plan for higher outflows, with doubled eligibility for enterprise tax incentives intended to attract investment and talent. Red tape is also being cut to let more bars and pubs expand outdoor dining.

Access to finance features too: a £4 billion boost that includes £1 billion for start‑ups via 69,000 Start‑Up Loans with mentoring, plus £3 billion for the British Business Bank to widen lending through the ENABLE programme. For seasonal working capital, that may offer alternatives to pricier short‑term borrowing.

The government says its consultation on late payments has concluded and a formal response is due in the new year. We’ll be watching how quickly the new regime moves from consultation to enforcement. For now, the playbook is clear: confirm payment dates with key customers, tighten credit control, and protect margins while footfall is on your side.