Full Breakdown
Waterstones' James Daunt Defends Business Rates Changes Amid Controversy
1/26/2026, 9:59:59 PM
Overview of Business Rates Changes
James Daunt, the managing director of Waterstones, has publicly defended the UK government's recent changes to business rates, asserting that these adjustments are beneficial for struggling high street retailers. Daunt noted that while large, successful locations like Waterstones' flagship store in London will see increased rates, these will be counterbalanced by significant reductions in areas facing economic challenges, such as Newport, Grimsby, and Barrow-in-Furness. He expressed optimism that these changes could encourage retailers to reopen in these less affluent areas.
Impact on Waterstones and the Retail Sector
Despite the broader concerns regarding rising tax bills following the 2024 budget, Daunt indicated that Waterstones has not been severely impacted by the increases in employers' national insurance contributions. He stated that the company does not typically employ short-hour contract workers, who are most affected by these changes. Daunt also mentioned that Waterstones experienced a 7% increase in sales, reaching £565.6 million in the year ending May 2025, although pre-tax profits fell by approximately £3 million due to a one-off cost related to a cyber-attack.
Criticism from the Booksellers Association
Contrasting Daunt's perspective, Meryl Halls, managing director of the Booksellers Association, has criticized the government's business rates reforms. She warned that these changes could be detrimental, particularly for small and medium-sized bookshops, with a survey indicating that 85% of members felt less inclined to invest in stock or staffing due to the new rates. This dissent highlights a significant divide within the retail sector regarding the impact of the government's policies.
Official Statements & Responses
Daunt has articulated his long-standing concerns about government support for high streets, particularly during the Conservative administration, and praised the Labour government for what he perceives as sensible measures to assist struggling areas. He stated, “I have been complaining long and hard all through the Conservative years about government failing to support the high street... The Labour government is now trying to do sensible things to help.”
Verbatim Quotes
- “our main advantage is that we will get neighbours back again” — James Daunt, Managing Director of Waterstones
- “The Booksellers Association has been clear from the outset that the government’s business rates reforms risk being deeply damaging, particularly for small and medium-sized bookshops.” — Meryl Halls, Managing Director of the Booksellers Association
- “from our perspective nothing we are being asked to do are things that don’t feel manageable and reasonable” — James Daunt
What's Next for Waterstones?
Looking ahead, Daunt mentioned plans for Waterstones to open ten new stores annually in the UK, indicating a positive outlook for the bookselling industry. He also noted that the company has been performing well since the pandemic, with trends in reading being influenced by social media platforms like TikTok. This suggests a potential for continued growth in the sector, despite the ongoing debates surrounding business rates and their implications for various retailers.
