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.»
“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.”
Wrigley estimates that the combined impact of new government policies and rising costs could add an extra £55,000 to his business expenses this year. This includes higher employer National Insurance contributions, a rise in the National Minimum Wage, and soaring energy bills. “For weeks, I found myself sitting with my head in my hands, wondering how we could possibly make it work,” he admitted.
Firms under pressure throughout Greater Manchester
Wrigley’s difficulties are not isolated. Tony Cunningham, who owns Leckenby’s Tea Room in Bury, has characterized the present time as «the toughest in 27 years.» Cunningham’s establishment is under considerable financial pressure, with business rates scheduled to more than double in April and electricity expenses projected to climb by over 30%. Furthermore, National Insurance and wage contributions are rising by an extra 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 voiced similar worries, cautioning that numerous small enterprises in the hospitality industry have already had to shut down before April’s upcoming changes. Robert Downes, an FSB representative in Greater Manchester, characterized the situation 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 a fair environment for high street businesses,» the spokesperson stated. «By eliminating the £110,000 cap for business rates relief, over 280,000 retail, hospitality, and leisure enterprises will gain advantages. Our aim is to move further and faster to inspire 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.
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.
A precarious future for small businesses
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
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.
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.
