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.
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.”
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.”
Businesses feeling the strain across Greater Manchester
“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.”
Government stands by its economic plan
A representative from the Treasury has supported the government’s strategy, stressing its aim to enhance economic growth and aid high street enterprises. The spokesperson pointed out initiatives like permanently reducing business rates and capping corporation tax for the duration of the ongoing Parliament.
“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.”
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.
An uncertain future for small enterprises
For small enterprises in Manchester, the blend of rising expenses and economic unpredictability is forming a perfect storm. Owners are compelled to make tough choices, such as reducing staff hours or increasing prices, to remain viable. However, these actions carry risks, and many worry that the pressure might eventually become overwhelming.
Wrigley, for instance, is concerned about how raising prices could impact customer loyalty. “There’s a limit to what people are willing to pay before they begin seeking alternatives,” he noted. “High inflation is already straining everyone’s finances. If we raise prices too much, we’ll lose customers. But if we don’t, we’ll collapse.”
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.
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.
