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.
Small businesses across Manchester are grappling with an increasingly challenging economic environment as mounting expenses threaten their survival. Business owners in the hospitality sector, in particular, are raising concerns over how rising costs, combined with government policies, are creating a precarious situation. For many, the fear of closure looms large as they struggle to reconcile higher expenses with declining margins.
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.”
Companies 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.
“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.”
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.
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.
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
Calls for greater support
On the other hand, the government maintains that its strategies aim to promote long-term growth. By reducing business rates and offering targeted relief, officials believe they are assisting businesses in navigating the current challenges. Nevertheless, critics claim that these actions fall short of tackling the immediate financial strains that small companies are experiencing.
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.
