Jane - I think it depends where in the UK you are. I know that Birmingham was using 'Winter Festival' at one time - not sure if that is still the case. There was also a big fuss about one chain of charity shops refusing to sell religious Christmas cards for fear of causing offence.
During the recent World Cup taxis in the Staines area were banned by the local council from flying the St George flag, in case it caused offence to other people. PC is there, unfortunately.