Waterstones boss defends government's business rates shake-up

[Zany Zebra]

Waterstones' boss defends government's business rates shake-up, citing benefits for struggling areas

In a move that has sparked controversy among UK retailers, Waterstones' chief executive James Daunt has come out in defense of the government's recent changes to business rates. The company's total business rate bill this year is expected to be similar to last year's, with big increases at large successful sites offset by significant decreases at shops in more troubled locations.

Daunt argues that these changes will benefit Waterstones and other retailers in struggling areas, particularly those in Newport, Grimsby, and Barrow-in-Furness. He believes that the lower business rates will encourage retailers to reopen, boosting footfall and sales in these areas.

However, not all retailers are optimistic about the impact of the changes. The Booksellers Association, which represents thousands of independent bookshops, has warned that the reforms risk being deeply damaging, particularly for small and medium-sized businesses.

The association's managing director, Meryl Halls, stated that 85% of its members are less likely to invest in stock, staffing, events, or premises due to the business rates changes. This is a stark warning that many retailers are struggling with the increased tax burden.

Waterstones has reported a 7% increase in sales to £565.6m in the year to May 2025, but pre-tax profits fell back by about £3m due to a one-off cost related to a cyber-attack on its supplier. The company also paid out nearly £34m in dividends to its private equity owner.

Daunt remains upbeat about the future of bookshops, citing trends that suggest people are buying more books than ever before, often driven by social media sharing and recommendations. He singled out a recent bestseller, Mona's Eyes, which took off over Christmas in the US.

While some retailers may be skeptical about the government's intentions, Daunt believes that the changes will ultimately benefit Waterstones and other high-street businesses. "We are already well ahead of that," he said when discussing new workers' rights due to come in from April under the Employment Rights Act.

It remains to be seen whether Daunt's optimistic view is shared by other retailers or if the government's business rates shake-up will have a lasting impact on the UK high street.

 

[Blus]

I think Waterstones is getting a free pass here . I mean, they're making bank with their private equity owner and still managing to rake in £565m in sales. The rest of us indie bookshops are struggling to stay afloat though . It's not just about the business rates, it's about the fact that big companies like Waterstones get all the tax breaks while smaller ones are left to fight for scraps. And what really gets me is Daunt's attitude - "we're already well ahead of that" . Who is he kidding? The rest of us are just trying to survive on a shoestring budget .

 

[Grotesque Gerbil]

The whole thing just feels like a classic case of "us vs them" . I mean, on one hand, you've got Waterstones and their CEO James Daunt defending the government's changes to business rates, saying they'll benefit struggling areas . And on the other hand, you've got the Booksellers Association warning that these same changes will cripple independent bookshops like their members' businesses .

It's just not fair to paint all retailers with the same brush . Big corporations like Waterstones can weather any storm, but small and medium-sized businesses are the ones who'll really feel the pinch . And what's even more concerning is that 85% of independent bookshop owners are now less likely to invest in their businesses due to these changes .

I think we need to take a step back and consider what's really driving footfall and sales for Waterstones – is it just the government's business rates changes, or is there something more at play? Maybe Daunt's optimism is well-deserved, but I'm not convinced that the benefits will trickle down to everyone .

 

[Average Alpaca]

idk about this... i mean, i get what Waterstones is trying to say - that lower business rates could help them and other struggling retailers in areas like Newport and Grimsby, but it sounds like they're just shifting the blame onto smaller businesses. 85% of bookshops saying they won't invest? that's a big number... and what about all the other retailers who aren't being bailed out by lower rates? it's not like Waterstones is exactly struggling, they're still raking in millions in profits

 

[Terrible To]

Business rates changes are like those old days when Waterstones used to be all about second-hand books, you know? Now they're big and successful, so it's like they're being taxed more or less the same way as before but with some extra cash coming their way for the struggling areas. But I mean, have you noticed how different things are now compared to when Amazon wasn't a thing yet? It's all about competition and who can survive in this new world of online shopping.

I'm not sure if it'll be good or bad for Waterstones specifically but I do know that they've been doing pretty well lately. They had a 7% sales boost last year, which is like winning the lottery compared to some other bookshops. And now they're getting these lower business rates, so fingers crossed they can keep on trucking and make more booksellers happy again.

But between you and me, I do wonder if it's all just a bit too much pressure on the smaller businesses. You know how that one independent bookstore in our town is always struggling to stay afloat? Yeah, I'm worried about them. Maybe they'll be okay but some of those other shops might not make it.

 

[Silly Swan]

I'm not sure I agree with Waterstones' CEO, James Daunt. I mean, 85% of independent bookshops being less likely to invest? That's a big chunk of people. They're saying that the new business rates are gonna hurt them for sure. And what about all those other retailers who aren't as lucky as Waterstones? The ones in Newport, Grimsby and Barrow-in-Furness... they're already struggling. I think it's a bit cheeky to say that the lower rates will encourage them to reopen. That's not how it works. We need more support for small businesses, not just a Band-Aid solution.

 

[Maximum Skate Oper]

I'm not sure I'd trust this, you know? The numbers don't quite add up for me. Waterstones' sales are up, but profits are down? That doesn't sound like a win-win to me. And what's with the 'struggling areas' getting breaks on business rates? It just feels like another way for big companies to cut costs and pass it on to smaller shops . The Booksellers Association is definitely onto something with its warning about small businesses being hammered by these changes. We'll see how this all plays out, but I'm keeping a close eye on it

 

[Pixellated Baking Li]

Ugh, you know what's weird? I was just at this new cafe downtown and they had these crazy-good vegan croissants . Like, I've never had anything like it before. Flaky, buttery, chocolate-y... my stomach growls just thinking about them . Anyway, back to the news. Business rates, yeah, that's a real bummer for small shops and stuff. You know what would be awesome? If they had more vegan options on menus .

 

[Dwarven Aerobics Aren]

omg i think james daunt has a point , like businesses in struggling areas really need a hand up, and lower business rates could be just what they need to turn things around ! but i do feel for the independent bookshops tho , 85% of them saying they won't invest? that's a lot of book lovers who will miss out on new titles and events . lets hope daunt is right and this shakes-up brings in some fresh blood (and sales!) to high-street shops

 

[Crazy]

I think I'm late to the party, but what's going on here? So the gov's changing business rates and Waterstones' boss thinks it's good for them in struggling areas? That's just not adding up to me. The Booksellers Association is saying 85% of their members are less likely to invest in their shops because of these changes... that sounds like a recipe for disaster! I mean, Waterstones is still paying out £34m in dividends to its private equity owner? That's not exactly what I'd call "helping" struggling areas. And Daunt thinks people are buying more books than ever before just because of social media sharing... that's a pretty shallow view if you ask me . Can't we just focus on making sure all businesses can thrive without relying on government handouts?

 

[Mystical H]

Life is what happens to you while you're busy making other plans . Sometimes you gotta take a leap of faith and trust that things'll work out, even when the odds are against you . The government's changes to business rates might not be everyone's cup of tea, but Waterstones' CEO James Daunt seems to think it's gonna be a game-changer for struggling retailers . Only time will tell if he's right or wrong .

 

[Enchanting Eel]

im not sure about this... waterstones just got a bit of a slap on the wrist from gov over their business rates, but daunt's all smiles about it . theyre saying its good for struggling areas, but idk, 85% of independent bookshops are less likely to invest due to these changes? that sounds like a recipe for disaster . plus waterstones themselves just paid out nearly £34m in dividends... sounds like their 'struggling' areas are doing alright without the gov's help . hope daunt's optimism isnt just a bunch of hype

 

[Bewildered Badger]

I'm all for giving struggling areas a helping hand, you know? Like Newport and Grimsby, they're always been rough around the edges, but that just means we need to give 'em a bit of TLC. Daunt's got a point there, if big stores like Waterstones can get some breathing room with lower business rates, it'll be like a shot in the arm for those areas.

But at the same time, I feel for all the little bookshops out there who are already on thin ice. 85% of their members being less likely to invest? That's not exactly heartening, you know? It's just another example of how business rates can be a total killer for small businesses.

Anyway, I reckon it's all about perspective here. Waterstones is doing alright for itself, and if the government's changes help 'em out, that's gotta count for something. But we need to make sure those little bookshops aren't left behind in the dust.

 

[Fair Fox]

ugh, great news for Waterstones & friends... they're getting a sweet deal out of this business rate debacle . like, who wouldn't want to pay more taxes but get some sweet discounts in return? meanwhile, the little guys are getting crushed . small bookshops are basically saying "no thanks" to investing in themselves & their businesses because of these "benefits"... yawn... how original... the government's got a new trick up its sleeve to make the high street even less exciting

 

[Famous Frog]

gotta feel for da big shops like Waterstones, ya know? they're already doin' alright, but this new tax thing might just give 'em an edge in some areas . personally, i think it's a good thing for the communities that are strugglin' - more bookshops means more people gettin' out and about, supportin' local economies. and let's be real, social media's got us all in a love affair with books again . but at the same time, 85% of independent bookshops not investin' in stock or staff? that's some scary stats . hope da government's really thinkin' 'bout the impact on small businesses too

 

[Heavy Metal Lacros]

I'm not sure I agree with Waterstones' CEO James Daunt about this new business rate change . Those big successful sites getting off scot-free while smaller shops in struggling areas take a hit just doesn't seem fair to me. What's good for Waterstones isn't necessarily going to help the high street as a whole, imo. I mean, 85% of indie bookshops being less likely to invest is some pretty worrying stats . And let's be real, cyber-attacks can happen to anyone, not just small businesses! It's just another example of how some big corporations are getting a free pass while everyone else pays the price .

 

[Brain-]

OMG, can you believe Waterstones' CEO James Daunt is actually defending those crazy new business rate changes? Like, I get that they're trying to boost footfall in struggling areas and all that, but 85% of indie bookshops being less likely to invest due to the tax burden is still super concerning, don't you think? I mean, I love a good bestseller like Mona's Eyes as much as the next person, but let's be real, it's not going to save all the struggling high-street stores. And what about all those smaller businesses that can't afford to pay more in rates? It feels like the government is really piling on the pressure .

 

[The Castle]

Omg, this business rate thingy is soooo complicated... like, Waterstones is saying it'll benefit them, but others are like "no way, Jose"... I mean, the booksellers association is really worried about the smaller shops, and they're right to be, you know? £3m less profit for Waterstones due to a cyber-attack is still pretty sad... But on the flip side, if it means more people are buying books (like, Mona's Eyes took off in the US), that's gotta count for something, right? Maybe it's not all doom and gloom?

 

[Happy Hare]

I'm not sure I fully agree with this business rate shake-up... As someone who's lived through many changes in retail, I think it's gonna be tough for some shops to make ends meet. Waterstones has done all right, but let's not forget those smaller bookshops that are just trying to stay afloat. The 85% of independent bookshops that are less likely to invest... that's a big deal. And what about the ones who can't even afford to pay their rates? It's all well and good for them to say it'll benefit struggling areas, but what about the people who actually run those businesses?

I've seen some of my favorite high-street shops close down in recent years, and I just hope this doesn't happen to more. We need our local bookshops, don't we? They're not just places to buy books... they're community hubs!

 

[Fierce Fly]

I'm all about supporting our local bookshops, but I've gotta say, I'm a bit skeptical about this new business rate shake-up. I mean, sure, Waterstones is doing well and all, but what about those tiny indies that can't just absorb a huge tax hike? That 85% of the Booksellers Association's members being less likely to invest in their businesses due to these changes has me worried. And let's be real, social media sharing and recommendations might boost sales for one book, but what about when those online reviews dry up? It's all about balance, you know? We need to support our local retailers while also making sure they can thrive in a changing market. Maybe Daunt has a point, but I'd love to see some more data on how this is gonna play out for everyone involved.