Waterstones Boss James Daunt Defends Government's Business Rates Changes Amid High Street Struggles
The high street has been facing unprecedented challenges in recent years, with many retailers struggling to stay afloat. Waterstones boss James Daunt has defended the government's changes to business rates, arguing that they have benefited outlets in struggling areas.
Daunt pointed out that while big increases at large, successful sites like Waterstones' flagship on London's Piccadilly may seem alarming, the company has seen significant decreases in business rates at shops in more troubled locations. This shift, he believes, will help retailers reopen and attract new customers to previously neglected towns.
However, not everyone shares Daunt's optimism. The Booksellers Association, which represents thousands of independent bookshops, has warned that the government's reforms risk being deeply damaging for small retailers like its members. In fact, a recent survey found that 85% of bookshop owners are less likely to invest in stock, staffing, or events due to the changes.
Daunt acknowledged the concerns but argued that his company has been able to absorb the increased costs without major issues. Waterstones' sales have actually risen by 7% to £565.6m in the year to May 2025, despite pre-tax profits falling back by £3m.
The bookseller's boss also seemed relaxed about the higher legal minimum wage and increases to employers' national insurance contributions that came into effect last April. While these changes may have added extra costs for Waterstones, Daunt described them as "manageable and reasonable".
Daunt's comments have been seen as a departure from Labour's stance on business rates, which had previously criticized the government for failing to support the high street. However, he believes that the current reforms are trying to do "sensible things" to help struggling retailers.
As the retail sector continues to grapple with the challenges of Brexit, changing consumer habits, and rising costs, it remains to be seen whether Daunt's optimism is shared by other retailers or if the high street will continue to struggle.
The high street has been facing unprecedented challenges in recent years, with many retailers struggling to stay afloat. Waterstones boss James Daunt has defended the government's changes to business rates, arguing that they have benefited outlets in struggling areas.
Daunt pointed out that while big increases at large, successful sites like Waterstones' flagship on London's Piccadilly may seem alarming, the company has seen significant decreases in business rates at shops in more troubled locations. This shift, he believes, will help retailers reopen and attract new customers to previously neglected towns.
However, not everyone shares Daunt's optimism. The Booksellers Association, which represents thousands of independent bookshops, has warned that the government's reforms risk being deeply damaging for small retailers like its members. In fact, a recent survey found that 85% of bookshop owners are less likely to invest in stock, staffing, or events due to the changes.
Daunt acknowledged the concerns but argued that his company has been able to absorb the increased costs without major issues. Waterstones' sales have actually risen by 7% to £565.6m in the year to May 2025, despite pre-tax profits falling back by £3m.
The bookseller's boss also seemed relaxed about the higher legal minimum wage and increases to employers' national insurance contributions that came into effect last April. While these changes may have added extra costs for Waterstones, Daunt described them as "manageable and reasonable".
Daunt's comments have been seen as a departure from Labour's stance on business rates, which had previously criticized the government for failing to support the high street. However, he believes that the current reforms are trying to do "sensible things" to help struggling retailers.
As the retail sector continues to grapple with the challenges of Brexit, changing consumer habits, and rising costs, it remains to be seen whether Daunt's optimism is shared by other retailers or if the high street will continue to struggle.
I'm not sure I agree with Waterstones' boss James Daunt on this one... 
I mean, 85% of bookshop owners being less likely to invest? That sounds pretty dire to me 
. And don't get me wrong, I love a good bookshop as much as the next person, but it's hard not to worry about those tiny businesses struggling to stay afloat 
. 
. It's a vicious cycle that can be hard to escape. We'll just have to wait and see if Daunt's optimism is shared by other retailers or if things continue to look grim for high street shops 
Like, I get that he wants his company to succeed, but what about all those tiny independent bookshops that can't even afford to stock books let alone pay rent? 
i'm so confused 
that some retailers like waterstones are doing okay 
but on the other hand, what about all those smaller bookshops 
that can't afford to stay afloat 
? 85% of bookshop owners being less likely to invest 
is a big deal 
daunt's optimism seems a bit unrealistic 
if these reforms will actually help the high street or not 
his boss move on waterstones is def gonna save alot of struggling bookshops 
i mean yeah daunt says it might seem scary at first but i think its actually super smart for them to do that in areas where people rnt shopping much anymore 
daunt's point about decreases in rates at struggling shops is 
️ but what about those who can't afford it? 
smaller bookshops are 
and daunt should consider supporting them more 
instead of just saying it's "manageable" 
. also, 7% sales rise is 
but £3m profits fall? that's a big 
. maybe we need to rethink our business models or 
shop on line 
. If they can't afford to stay open, how are we supposed to access resources and libraries outside of school? It's not fair that some companies get a break while others struggle to survive 
. I hope our local council steps in soon to help out...
... 85% of their members saying they're less likely to invest in stuff? That's a lot of people struggling to stay afloat 
, but at the same time, those independent bookshops are like, really worried 
... does anyone know how this whole thing is gonna play out? 
daunt's being super optimistic about this but lets be real, most bookshops are going to die a slow death 
anyone who thinks 7% sales increase = good luck 
and what really gets me is he's trying to spin it like its all sunshine and rainbows... meanwhile those small independent shops are just gonna disappear into thin air 
. Still, I'm skeptical about the government's impact on smaller retailers 
. The high street needs support, not just tweaks to business rates 
. It seems more like a bunch of businesses trying to stay afloat by passing on costs to others 
. And let's be real, the high street has been in trouble for years, so it's not like these changes are gonna magically fix everything 
. Until then, I'll be keeping an eye on how things play out 
. It's all about supporting local communities and giving them a chance to thrive again.