Small enterprises throughout Manchester are facing a more daunting economic climate as escalating costs endanger their viability. Entrepreneurs in the hospitality industry, specifically, are expressing worries about how increasing expenses, alongside government policies, are putting them in a difficult position. For numerous businesses, the threat of shutting down is significant as they work to balance higher costs with shrinking profits.
Mark Wrigley, who owns Atlas Bar in Manchester’s downtown area, has expressed his dissatisfaction with what he perceives as inadequate assistance from the government. Wrigley, who has been running the bar since 2012, says he feels «let down» by the policies announced in the government’s Autumn budget. He thinks these initiatives, along with rising energy costs, business taxes, and salary hikes, could be disastrous for small businesses like his.
Mark Wrigley, the owner of Atlas Bar in Manchester’s city center, has voiced his frustrations at what he sees as insufficient government support. Wrigley, who has operated the bar since 2012, describes feeling “disillusioned” with policies introduced in the government’s Autumn budget. He believes these measures, coupled with escalating energy bills, business rates, and wage increases, could have devastating consequences for small enterprises like his.
“I was planning to expand my business by hiring more staff and extending our hours,” Wrigley explained. “But now, those plans are off the table entirely. Instead, I’ve had to cut staff hours and increase prices just to stay afloat.”
Although feeling discouraged, Wrigley is committed to continuing operations for the sake of his 28 staff members who count on him. «I’m extremely concerned about what lies ahead,» he mentioned. «Yet I must remain optimistic because numerous individuals rely on this establishment.»
Firms under pressure throughout Greater Manchester
Wrigley’s difficulties are not uncommon. Tony Cunningham, who owns Leckenby’s Tea Room in Bury, has called this time «the toughest in 27 years.» Cunningham’s business is experiencing major financial pressure, with business rates slated to more than double come April and electricity expenses anticipated to climb by more than 30%. Additionally, National Insurance and wage contributions are rising by another 10%.
«We’re experiencing pressure from every direction,» Cunningham remarked. «For businesses like mine to endure, increasing prices seems necessary, but it may drive customers away. It’s a never-ending loop.» He also highlighted that the surging costs could result in more vacant storefronts on high streets, further damaging local economies.
The Federation of Small Businesses (FSB) has mirrored these worries, cautioning that numerous small companies in the hospitality industry have already had to shut down before the adjustments in April. Robert Downes, an FSB representative in Greater Manchester, described the circumstances as critical.
«Businesses are being hit hard by tax hikes, and many cannot handle the extra expenses,» Downes stated. «If the government fails to act to alleviate the impact, we’ll witness even more shutdowns. That’s negative not only for the businesses but for the economy overall. Burdening companies with high taxes won’t result in growth.»
“Businesses are being hammered by tax increases, and many simply can’t absorb the additional costs,” Downes explained. “If the government doesn’t take steps to cushion the blow, we’ll see even more closures. That’s bad news not just for the businesses, but for the economy as a whole. Punishing firms with high taxes won’t lead to growth.”
A representative from the Treasury has justified the government’s strategy, underscoring its emphasis on promoting economic growth and aiding high street enterprises. The representative pointed to actions like permanently reducing business rates and capping corporation tax for the current parliamentary term.
«We’re creating equal opportunities for high street businesses,» the spokesperson stated. «By eliminating the £110,000 cap for business rates relief, over 280,000 retail, hospitality, and leisure businesses will gain advantages. Our objective is to advance further and rapidly to foster growth and prosperity.»
“We’re leveling the playing field for high street businesses,” the spokesperson said. “By removing the £110,000 cap for business rates relief, more than 280,000 retail, hospitality, and leisure businesses will benefit. Our goal is to go further and faster to stimulate growth and prosperity.”
Despite these assurances, business owners like Wrigley and Cunningham remain skeptical. Many argue that the government’s efforts are insufficient to address the scale of the challenges they face.
In Manchester, for small enterprises, the mix of increasing expenses and economic unpredictability is creating a critical situation. Proprietors are compelled to make tough choices, such as reducing employee hours and hiking prices, to remain viable. However, these actions involve risks, and many are concerned that the strain may eventually become overwhelming.
For small businesses in Manchester, the combination of rising costs and economic uncertainty is creating a perfect storm. Owners are being forced to make difficult decisions, from cutting staff hours to raising prices, in order to stay afloat. However, these measures come with risks, and many fear that the pressure may ultimately prove too great.
Wrigley, for example, worries about how price increases might affect customer loyalty. “There’s only so much people are willing to pay before they start looking elsewhere,” he said. “High inflation is already squeezing everyone’s budgets. If we push prices too far, we’ll lose customers. But if we don’t, we’ll go under.”
Demands for increased assistance
Business organizations and industry representatives are urging the government to take more assertive steps to aid small enterprises. The FSB has called on lawmakers to rethink proposed tax hikes and implement strategies to assist businesses in handling rising expenses. Without further assistance, many worry that small businesses—frequently referred to as the backbone of the economy—will persist in facing challenges.
On the other hand, the government maintains that its strategies aim to promote long-term growth. By reducing business rates and offering targeted relief, officials believe they are assisting businesses in navigating the current challenges. Nevertheless, critics claim that these actions fall short of tackling the immediate financial strains that small companies are experiencing.
For Wrigley, the unpredictability about what lies ahead is one of the toughest parts of the present circumstances. «It feels like we’re constantly putting out fires,» he commented. «Rather than concentrating on expanding the business, I’m dedicating all my time to figuring out how to make it through. It’s incredibly exasperating.»
For Wrigley, the uncertainty surrounding the future is one of the most challenging aspects of the current situation. “It feels like we’re constantly firefighting,” he said. “Instead of focusing on growing the business, I’m spending all my time trying to figure out how to survive. It’s incredibly frustrating.”
As small businesses across Manchester and the UK navigate this difficult period, their resilience will be tested like never before. Whether they can adapt and thrive in the face of rising costs and economic uncertainty remains to be seen. For now, business owners like Wrigley and Cunningham are doing everything they can to keep the lights on, even as the odds seem increasingly stacked against them.
