London, (Shahzad Ali) — Prime Minister Sir Keir Starmer has said that small businesses are the heartbeat of the economy and the foundation of communities. He was paying tribute to small businesses, frontline workers and community heroes at the annual Christmas Lights Switch-On ceremony held at Downing Street.

The Prime Minister hosted a special showcase featuring small businesses, service staff and community champions. Sir Keir Starmer said that this Christmas, “we are not just switching on lights, but highlighting the remarkable entrepreneurs and families who bring life to our high streets.”

He added that from extending business rates relief to increasing apprenticeship funding, the government is supporting small businesses at every step, because “when they succeed, Britain succeeds.” According to the government, small businesses are expected to see a 19% increase in sales this Christmas season compared to last year, potentially boosting the economy by up to £5 billion. Budget 2025 includes key incentives for small businesses such as extended rates relief, fully funded apprenticeships for under-25s, and enhanced business tax incentives.

A government statement said the annual Christmas Lights Switch-On at Downing Street was dedicated to celebrating small businesses across the UK. The event was held as a prominent prelude to Small Business Saturday, recognising the vital role small businesses play in providing jobs and sustaining high streets and markets across the country. According to Small Business Britain, sales for small businesses are expected to rise by 19% this Christmas, contributing nearly £5 billion to the economy.

The ceremony was attended by NHS staff, military personnel, firefighters, police officers and community champions to acknowledge their service during the busy festive season. Fourteen-year-old community worker Samuel Salamone had the honour of switching on this year’s Christmas lights.

The Christmas showcase was organised ahead of Small Business Saturday, the national day celebrating the UK’s 5.6 million small businesses and encouraging the public to shop locally.