The chief executive of Waterstones has publicly endorsed the Labour Party government's newly introduced business rate regulations, describing them as a necessary and reasonable intervention to support the retail sector. James Daunt articulated that while larger, more profitable Waterstones locations will face substantial rate increases, these will be counterbalanced by "quite significant" reductions for shops operating in more economically challenged areas.
Balancing the Books: A New Approach to Business Rates
Daunt emphasised that the reformed system aims to create a fairer distribution of financial burdens across the retail landscape. He believes this approach will encourage a resurgence of commercial activity on Britain's high streets, particularly in less affluent regions that have suffered disproportionately under previous policies. "Our main advantage is that we will get neighbours back again," Daunt remarked, suggesting that other retailers might consider reopening stores as a result of the revised rates.
Managing Increased Operational Costs
While acknowledging that Waterstones has incurred additional costs due to the policy changes, Daunt maintained a pragmatic outlook. "From our perspective, nothing we are being asked to do are things that don't feel manageable and reasonable," he stated. This comment reflects a broader acceptance within the company that the reforms, though challenging, represent a constructive step toward revitalising the retail environment.
Historical Context and Political Criticism
The Waterstones CEO did not hesitate to contrast the current government's actions with those of its predecessor. "I have been complaining long and hard all through the Conservative years about government failing to support the high street and particularly less affluent high streets where we paid totally disproportionate business rates," Daunt revealed. He now views the Labour administration as "trying to do sensible things" to address these longstanding issues.
Industry Concerns from the Booksellers Association
Not all voices in the literary retail sector share Daunt's optimism. Meryl Halls, managing director of the Booksellers Association, expressed reservations about the potential impact of the reforms. "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," Halls cautioned. This highlights a tension between larger chains like Waterstones and independent retailers who may face different financial pressures.
Separate Controversy Involving David Walliams
This business rates discussion emerges alongside unrelated developments concerning Waterstones' festival programming. The company recently confirmed that David Walliams has been removed from the lineup for the Waterstones Children's Book Festival in Dundee. This decision follows HarperCollins' termination of its publishing relationship with Walliams after investigating allegations of inappropriate behaviour toward young women.
A spokesperson for Walliams stated to the Press Association: "David has never been informed of any allegations raised against him by HarperCollins. He was not party to any investigation or given any opportunity to answer questions. David strongly denies that he has behaved inappropriately and is taking legal advice." Waterstones issued a brief statement confirming HarperCollins' notification about Walliams' non-appearance, but the festival matter remains distinct from the business rates policy debate.
