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 runs Atlas Bar located in the heart of Manchester, has expressed his dissatisfaction with what he perceives as a lack of adequate support from the government. Having managed the bar since 2012, Wrigley shares feeling “disheartened” by the policies presented in the government’s Autumn budget. He thinks that these actions, alongside rising energy prices, business rates, and salary hikes, might lead to severe effects on small businesses like his own.
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.”
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.”
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.
“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.
“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.”
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.
Despite these promises, entrepreneurs like Wrigley and Cunningham are still doubtful. Numerous business owners argue that the government’s measures fall short in tackling the magnitude of the issues they encounter.
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.
For Cunningham, the difficulties are intensified by the overall condition of the high street, where closed stores and reduced foot traffic paint a bleak scenario. “When businesses shut down, it causes a domino effect,” he explained. “Fewer stores lead to fewer customers, increasing the strain on those of us who remain.”
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.
The government, meanwhile, insists that its policies are designed to foster long-term growth. By cutting business rates and providing targeted relief, officials believe they are helping businesses weather the storm. However, critics argue that these measures do little to address the immediate financial pressures facing small firms.
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.
