Business

Can targeted business rates reform save independent bookshops in northern towns and what must owners do now

Can targeted business rates reform save independent bookshops in northern towns and what must owners do now

I walk past independent bookshops in northern towns every week and I can't help but measure them against the cafes and charity shops that seem to thrive on high streets. Some stores are bustling, others are quiet, and a worrying number display "closing down" posters. The conversation I keep hearing from owners, customers and local councillors centres on one thing: business rates. Could a targeted reform of business rates save these bookshops? And if reform is slow or partial, what must owners do now to survive?

Why business rates feel like a punishment for bookshops

Business rates are a tax on occupied commercial property, and for many independent bookshops — often housed in older, centrally located premises — they represent a disproportionate fixed cost. Unlike larger retailers that can spread costs over numerous outlets or sell online at scale, an indie bookshop's margins are already thin. A mismatch between property valuation and footfall can leave owners paying rates that outstrip income.

People often ask whether business rates are the root cause of closures. They’re not the only reason — competition from online retailers, rising rents, wartime inflationary pressures and changing leisure habits all matter — but they are a very visible, recurring pressure that can tip a fragile business over the edge.

What targeted business rates reform could realistically achieve

A blanket reduction in business rates might sound attractive, but it would be expensive and politically tricky. Targeted reform, however, can be both feasible and efficient. Here’s what would help bookshops in northern towns specifically:

  • Local relief schemes that allow councils to direct support to independent retail sectors rather than large national chains.
  • Smaller multipliers for low-footfall town centres, reflecting reduced commercial demand and the social value of bookshops as community hubs.
  • Revaluation schedules that account for structural shifts in retail — not just short-term rental price spikes — and that happen more frequently to reflect current realities.
  • Transitional relief for businesses that face sudden large increases after revaluation, so they have time to adapt.
  • Sector-specific exemptions for community-benefit providers like bookshops that host events, literacy programmes or serve as libraries-in-all-but-name.
  • These measures would not be an instant fix, but they would change the calculus for owners and investors by recognising the cultural and social contribution of small bookshops, not just their property value.

    A practical comparison: current situation vs targeted reform

    Today (typical) With targeted reform
    Rates burden High fixed cost linked to property valuation Reduced or tapered for independent cultural retailers
    Local control Limited ability for councils to target relief Greater discretion to support community-serving businesses
    Predictability Revaluations can cause sudden spikes Transitional protections and more frequent, fairer revaluations
    Wider effects High closures, loss of footfall Stronger town centres, increased social value

    Limits of reform — and why it must be paired with other measures

    Even the most sympathetic reform couldn’t restore sales that have moved entirely online. Bookshops are not just retail points; they are cultural venues. So reform needs to be coupled with policies that stimulate footfall and community use of town centres: better public transport links, town-centre living incentives, event funding and partnerships with libraries and schools.

    There’s also the practical reality of limited council budgets and central government political calculations. Targeted relief needs to be designed so it cannot be gamed by well-resourced chains claiming cultural credentials, and it should be administratively straightforward to avoid burdening small businesses with complex applications.

    What owners must do now — practical, immediate steps

    If you're an owner reading this, I won’t pretend a business rates shift will arrive tomorrow. Here are the steps I’d take if I ran a bookshop in a northern town today:

  • Audit your property status: Check your rateable value and appeal if it looks historically inflated. Owners often miss the deadlines or evidence they need. Use a valuation expert if you can afford one; it can pay for itself.
  • Document your social value: Start logging literacy events, school visits, volunteering activity, and community groups you host. That evidence strengthens applications for local relief schemes and can build a narrative when you lobby councillors.
  • Strengthen local partnerships: Reach out to libraries, schools, community centres and regional arts organisations. Joint programming — author talks with local schools or book groups tied to literacy initiatives — can unlock funding and increase footfall.
  • Diversify income: Consider paid events, subscriptions, book clubs with membership fees, curated boxes, or a stronger online presence via Shopify or Etsy for niche products. Diversification is not about abandoning books; it’s about finding complementary revenue streams.
  • Optimize the store as a space: Use your shop for multiple uses — a daytime reading room, an evening event venue, a meeting place for local groups. Rent small desks to freelancers where zoning allows. The more reasons people have to enter your shop, the more likely they are to buy.
  • Join or form a local retail consortium: Collective lobbying with other independents can persuade councils to use discretionary relief schemes. It’s also an opportunity to pool marketing resources for town-centre campaigns.
  • Communicate with customers: Be transparent about how rates and costs affect the business. Customers who love indie bookshops are often willing to pay a bit more, join loyalty schemes or donate to community funds if they understand the stakes.
  • Apply for grants: Local councils, Arts Council England and regional funds sometimes offer grants for projects that increase cultural participation. Use those to subsidise events, refurbishments or outreach.
  • Plan for different scenarios: Create a worst-case financial plan and a growth plan. Know how much you need monthly to stay solvent and what a modest uplift in sales would do. Scenario planning makes negotiation with landlords and lenders more credible.
  • How to engage with policymakers effectively

    Owners shouldn’t wait for Westminster. Local councillors often control discretionary relief. I’d advise shop owners to prepare a short, evidence-based briefing for their council leader or local MP: footfall stats, rateable valuation, community activities and a clear ask (for example, a 30% discretionary reduction for cultural retail for two years). Use customer testimonies — real voices are persuasive.

    Organised campaigns that tie a shop’s survival to town-centre health resonate with policymakers. Offer councils the upside too: explain how keeping bookshops open supports tourism, education and local identity, which in turn sustains council tax revenue and local economies.

    Targeted business rates reform can create breathing space for independent bookshops in northern towns, but it has to be practical, well-designed and accompanied by measures that rebuild footfall and diversify income. While we wait for policymakers to act, owners have a number of concrete strategies to strengthen their businesses, document their social value and make a compelling case for support. The future of these shops will depend on smart policy and the resourcefulness of owners and communities alike.

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