The Mancunian Way: ‘Prices will have to go up’

manchestereveningnews.co.uk:

The last time Bob Amato went out to eat he admits to being ‘astounded’ at the prices. But as the co-founder of Amato Food Products, a business that supplies many of Manchester’s restaurants, he says he ‘gets’ why they charge so much.

But, Bob fears, increases to the minimum wage and employer national insurance contributions announced by Chancellor Rachel Reeves in last month’s budget means dining out, and lots of other things besides, is only going to get more expensive. "Prices will have to go up," he said. "It means we'll have to increase our prices.” Bob was one of several small business owners on the Piccadilly Trading Estate on the outskirts of Manchester city centre that spoke to reporter Stephen Topping about the potential impact of the Budget. "I want the minimum wage to increase - I would rather pay people more," Jenny Keates, co-owner of secondhand clothing firm Vintage Folk said.

But Jenny says the company will have to absorb the national insurance hike, while also facing a 6.7 per cent increase in the minimum wage, while workers aged 18 to 20 will see their minimum wage go up by 16.3 per cent. "It just means that we are probably going to have to freeze hiring, which is a shame.

It feels like we are being punished for being business owners.” When she announced the Budget on October 30, Ms Reeves said the 'difficult decisions on tax' meant the Treasury could 'stabilise and support our public services' - including a £22.6 billion increase in day-to-day health spending.