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.
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.
“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.”
“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.”
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 facing challenges from every direction,” Cunningham remarked. “For businesses like mine to endure, increasing prices seems to be the only option, but that could deter customers. It’s a relentless cycle.” He also highlighted that the escalating expenses might result in more vacant shops on high streets, causing further damage to 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.”
“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.
A Treasury spokesperson has defended the government’s approach, emphasizing its focus on boosting economic growth and supporting high street businesses. The spokesperson highlighted measures such as permanently cutting business rates and capping corporation tax for the duration of the current Parliament.
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
A precarious future for small businesses
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.”
For Cunningham, the challenges are compounded by the broader state of the high street, where shuttered shops and declining foot traffic paint a grim picture. “When businesses close, it creates a ripple effect,” he explained. “Fewer shops mean fewer customers, which puts even more pressure on those of us who are still here.”
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.
