Small enterprises throughout Manchester are facing a progressively difficult economic climate as escalating costs jeopardize their existence. Owners in the hospitality industry, especially, are voicing worries about how the increasing expenses, coupled with governmental measures, are leading to a fragile predicament. The apprehension of shutting down is prevalent among many as they endeavor to balance soaring expenditures 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.
“I intended to grow my business by bringing in additional employees and extending our operating hours,” Wrigley stated. “However, those plans have now been completely shelved. Instead, I’ve been forced to reduce staff hours and raise prices simply to keep the business running.”
Wrigley calculates that the overall effect of the newly implemented government policies and increasing expenses could boost his business costs by an additional £55,000 this year. This encompasses increased employer National Insurance contributions, an elevation in the National Minimum Wage, and skyrocketing energy charges. “For several weeks, I found myself overwhelmed, pondering how we could possibly manage to make ends meet,” he confessed.
Despite his disappointments, Wrigley is resolute in his effort to keep his business operational, for the benefit of his 28 employees who depend on him. “I’m deeply concerned about what’s ahead,” he noted. “But I must remain optimistic because numerous individuals rely on this business.”
Despite his frustrations, Wrigley remains determined to keep his business running, for the sake of his 28 employees who rely on him. “I’m very worried about the future,” he said. “But I have to stay hopeful because so many people depend on this business.”
Wrigley’s difficulties are not isolated. Tony Cunningham, who owns Leckenby’s Tea Room in Bury, has characterized the present time as “the toughest in 27 years.” Cunningham’s establishment is under considerable financial pressure, with business rates scheduled to more than double in April and electricity expenses projected to climb by over 30%. Furthermore, National Insurance and wage contributions are rising by an extra 10%.
Wrigley’s challenges are not unique. Tony Cunningham, the owner of Leckenby’s Tea Room in Bury, has described the current period as “the most difficult in 27 years.” Cunningham’s business is facing significant financial strain, with business rates set to more than double in April and electricity costs expected to rise by over 30%. On top of that, National Insurance and wage contributions are increasing by an additional 10%.
“We’re being hit from every angle,” Cunningham said. “The only way for businesses like mine to survive is to raise prices, but that risks turning customers away. It’s a vicious cycle.” He also pointed out that the rising costs could lead to more empty shops on high streets, further harming local economies.
“Companies are getting hit hard by tax hikes, and many just can’t handle the extra expenses,” Downes explained. “Without government action to mitigate the impact, we’ll witness even more shutdowns. That’s detrimental not only for the businesses but for the entire economy. Burdening firms with steep taxes won’t foster 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.”
Government defends its economic strategy
A Treasury spokesperson has defended the government’s approach, emphasizing its focus on boosting economic growth and supporting high street businesses. The spokesperson highlighted measures such as permanently cutting business rates and capping corporation tax for the duration of the current Parliament.
In spite of these reassurances, business proprietors such as Wrigley and Cunningham remain doubtful. Many contend that the government’s initiatives are inadequate to tackle the magnitude of the difficulties they encounter.
An uncertain future for small enterprises
A precarious future for small businesses
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.
Business groups and industry advocates are calling on the government to take more decisive action to support small businesses. The FSB has urged policymakers to reconsider planned tax increases and introduce measures to help firms manage rising costs. Without additional support, many fear that small businesses—often described as the backbone of the economy—will continue to struggle.
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.
