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 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
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.
“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.”
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.”
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
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.
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.”
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
The government, on the other hand, maintains that its policies aim to promote long-term growth. By reducing business rates and offering targeted relief, officials believe they are aiding businesses in enduring the current challenges. However, critics contend that these actions do little to alleviate the immediate financial strains impacting small companies.
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.
