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 more employees and lengthening our operating hours,” Wrigley stated. “However, those plans have been completely scrapped. Instead, I’ve been forced to reduce staff hours and raise prices just to keep the business going.”
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.”
Companies 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%.
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%.
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.
The Federation of Small Businesses (FSB) has echoed these concerns, warning that many small firms in the hospitality sector have already been forced to close their doors ahead of April’s changes. Robert Downes, a representative for the FSB in Greater Manchester, described the situation as dire.
Government stands by its economic plan
Government defends its economic strategy
“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.
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.
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 is concerned about how raising prices could impact customer loyalty. “There’s a limit to what people will pay before they seek alternatives,” he noted. “High inflation is already tightening everyone’s finances. If we raise prices too much, we’ll drive customers away. Yet if we don’t, we’ll face closure.”
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 additional assistance
Calls for greater support
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.