Manchester bar owner warns soaring costs threaten many businesses

A bar owner has said he fears many small businesses are at risk of being “killed off” by a cocktail of rising costs.

Mark Wrigley, who runs Atlas Bar in Manchester city centre, said he was worried that measures announced by the government in the Autumn budget would “wipe out” already struggling firms.

Employers’ National Insurance (NI) contributions and the National Minimum Wage increase in April.

A Treasury spokesperson said the government was determined to “kickstart economic growth”, for example by “permanently cutting business rates” and “capping corporation tax for the duration of [the current] parliament”.

Mr Wrigley estimates the Budget measures, combined with rising business rates and energy bills, will add at least £55,000 to his costs this year unless he takes action.

“I spent a few weeks with my head in my hands,” he told the BBC.

Mr Wrigley, who has owned Atlas Bar since 2012, said he felt “disillusioned”, arguing that the government’s policies were “stifling growth”.

“We were going to take on extra staff and extend opening hours,” he said. “But we’re not doing it now.”

Instead, the bar owner said he had decided to cut staff hours and increase prices.

“I’m very concerned,” he said.

“But I’ve got to be hopeful (about the future) because I have 28 members of staff who rely on the business.”

Elsewhere in Greater Manchester, Tony Cunningham, owner of Leckenby’s Tea Room in Bury, said he was facing “the most difficult time in 27 years”.

“Our business rates are more than doubling in April,” he explained. “Our electricity is going up by over 30% and then National Insurance and wages are both going up by 10%.

“We’re really getting clobbered on all sides.”

Mr Cunningham said businesses like his would have to increase their prices to survive.

The Federation of Small Businesses (FSB) said firms were being “hammered” by tax rises and claimed many in the hospitality sector had already closed ahead of April’s changes.

“We know many have fallen by the wayside,” said Robert Downes, from the FSB in Greater Manchester.

“I suspect there may be more to come.”

Mr Downes called on the government to “cushion the blow”, arguing that rising business costs would be bad for the overall economy.

“If you’re punishing firms with super high tax bills, that is not going to trigger growth,” he warned.

The Treasury spokesperson said: “We delivered a once-in-a-Parliament budget to wipe the slate clean.

“Now we are focused on going further and faster to kickstart economic growth.

“We’re also levelling the playing field for high street businesses, by permanently cutting business rates and removing the £110,000 cap [for business rates relief] for over 280,000 retail, hospitality and leisure business properties, while also capping corporation tax for the duration of Parliament.”