𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Britain’s booksellers are being pushed to the brink by Labour’s business rates regime as 87% expect costs to soar this year. A damning survey has shown more than half fear they cannot trade sustainably as confidence in the sector has collapsed.

The poll found many now plan to slash investment, cut staff hours and reduce community events in the face of spiralling costs. Aardvark Books in Herefordshire has been hit by a devastating 400% rate increase forcing owners Sheridan and Sarah Swinson to bring forward their retirement.

Speaking to the Daily Express they said: “Whilst we have been thinking about retiring for a while, this was the major factor in our decision to move our retirement date forward.”

They were informed of the change last year. The Swinsons added it had “complicated the process of finding someone to potentially take on the building or business.”

The Booksellers Association found 57% listed business rates as a key concern this year. A staggering 85% of English bookshops said changes to rates make them less likely to invest in their businesses in 2026.

The survey reveals widespread pessimism, with 54% of booksellers saying they feel less confident about trading sustainably over the next 12 months than before the Budget. This comes despite the sector growing, with more than 1,000 bookshops now in the UK – up from 867 ten years ago – proving demand exists but Labour’s tax raid is killing businesses.

Laura McCormack, Head of Policy and Public Affairs at the Booksellers Association, warned the crisis threatens not just individual shops but entire high streets.

“No one’s going to go to High Street if all there is on it is a bookshop,” she said.

She added: “We have been disappointed with the changes announced in the last Budget, specifically for the independent sector.”

The association found 81% of booksellers listed the cost-of-living crisis hitting consumer spending as a major concern, while 61% raised staffing costs and recruitment pressures.

Ms McCormack said confidence has been shattered by the Budget: “Businesses are less likely to invest and do not feel as confident now about trading sustainably over the next 12 months. Rates have been looming large for a long time.”

Meryl Hall, Managing Director of the Booksellers Association, said independent booksellers operate on razor-thin margins that leave them vulnerable to any cost increases.

“Cost increases have been particularly hard for the SME sector because their margins are very thin. Profits are not that high. A lot of people in bookselling are in it for the passion of the product they sell,” she said.

Many bookshops face additional pressure from rental costs. Ms McCormack revealed over 80% of independent bookshops rent their premises, with costs reaching £100,000 in expensive parts of the country.

“A lot of them don’t have security of tenure because of the way the legislation is currently set up,” she said.

The Treasury defended its approach, with a spokesperson saying: “We’re backing high street businesses with a £4.3bn support package to limit bills rises, alongside capping Corporation Tax at 25%, cutting red tape and taking action on the cost of living to boost high streets.”

But the figures paint a devastating picture of an industry in crisis despite growing demand for bookshops.

With 87% expecting costs to increase and 85% now less likely to invest, Labour’s tax hikes threaten to hollow out Britain’s high streets and destroy community hubs that have served local areas for generations.

The case of Aardvark Books shows the real-world impact of these policies, with a family business built over years being forced to close early due to unsustainable rate increases.

For Britain’s independent booksellers, who have weathered the rise of online retail and the pandemic, Labour’s business rates regime may prove the final blow that forces them off the high street for good.