Can small elf cut Christmas decoration? (6)
I believe the answer is:
tinsel
'christmas decoration?' is the definition.
(tinsel is strewn around at Christmas)
'can small elf cut' is the wordplay.
'can' becomes 'tin' (both are metal containers).
'small' becomes 's' (abbreviation - e.g. clothes size).
'cut' means to remove the last letter.
'elf' with its final letter removed is 'el'.
'tin'+'s'+'el'='TINSEL'
(Other definitions for tinsel that I've seen before include "Strip of glittering paper" , "Shiny decoration" , "Sparkly decoration" , "Sparkly strands" , "Christmas foil" .)