The UK Fashion Industry Post-Brexit: New Report Highlights Challenges and Policy Solutions for Recovery

Image: The cover of the ‘Fashion’s Future: How Brexit Has Reshaped The Fashion Industry And How To Reposition The UK As An Industry Leader’ report

By Alix Coombs

The UK fashion industry has faced significant disruption in the wake of Brexit, from customs barriers and administrative burdens to talent shortages and declining sales. As businesses continue to adapt to the new post-Brexit reality, Fashion Roundtable has published an in-depth report titled ‘Fashion’s Future: How Brexit Has Reshaped The Fashion Industry And How To Reposition The UK As An Industry Leader’, which outlines the industry’s most pressing challenges and offers policy recommendations for recovery and growth.

In partnership with the Independent Commission on UK-EU Relations, Fashion Roundtable is contributing to a broader series of reports that will inform a final publication, to be presented to both UK and EU governments at events in London and Brussels later this year. This is a critical opportunity to bring the voice of the fashion industry directly into the policy spaces in both the UK and the EU, advocating for the changes necessary to enable the British fashion industry to thrive once more. By joining this collaborative effort, we hope to create a more supportive environment for UK fashion businesses, ensuring their continued success on the global stage.

Public Survey: Gathering Industry Insights

In preparing this report, Fashion Roundtable conducted a public survey to gather firsthand information and evidence from industry professionals. The responses, collected from a range of stakeholders—including designers, manufacturers, retailers, and service providers—shed light on the real-world impact of Brexit on the fashion industry. The survey results further substantiate the findings of the report and underscore the urgency of implementing policy changes that address the ongoing challenges facing the sector.

The insights collected from the survey highlight the deep concerns about the future of the UK fashion industry and provide a clear picture of the policy areas that need attention. The feedback from those directly affected by Brexit’s impacts provides a powerful foundation for the report’s policy recommendations.

Key Findings: Challenges Facing UK Fashion Post-Brexit

The UK Fashion Industry Post-Brexit Report identifies three key areas where the UK fashion industry continues to struggle:

1. Customs Barriers and Administrative Burdens

Since the UK’s departure from the EU, customs barriers have been a major challenge. New regulations have resulted in delayed shipments, additional paperwork, and increased costs. These barriers are particularly detrimental to small and medium-sized enterprises (SMEs) that rely on efficient cross-border trade. The complexity and inconsistency of customs procedures, combined with the need for frequent adjustments, make it difficult for businesses to maintain fluid operations.

2. Talent Mobility and Workforce Shortages

The free movement of workers, a key benefit for the fashion industry prior to Brexit, has been severely impacted by the introduction of more stringent visa requirements. Fashion businesses—especially those reliant on international talent for design, marketing, manufacturing, and retail—are facing significant staffing shortages. This shortage is further compounded by a lack of clear pathways for young creative professionals to enter the industry, limiting the sector’s growth and innovation potential.

3. Sales and Trade Declines

The decline in trade with the EU and other regions has hit the UK fashion sector hard. Increased tariffs, customs checks, and delays have made UK-made products more expensive in international markets, while reducing the flow of goods from the EU. This has led to a drop in both exports and imports, resulting in lower revenue for UK-based fashion businesses.

Policy Recommendations: A Path Forward

The report presents five key policy interventions designed to address these challenges and ensure the UK fashion industry remains competitive:

1. Improved Trade and Customs Agreements

To address the customs barriers and administrative burdens, it’s essential for the UK to negotiate more favourable trade agreements, particularly with the EU. Simplifying customs procedures and reducing the red tape will enable businesses to save time and money while allowing SMEs to compete on a level playing field.

2. Enhanced Mobility for Creatives and Youth

Talent mobility is crucial for the fashion industry, which thrives on creative input from across Europe and beyond. To mitigate the talent shortages, the government must introduce new visa schemes that make it easier for young creatives to enter the workforce. This would ensure that the next generation of designers, artisans, and fashion professionals are able to access opportunities within the UK.

3. Reinstatement of the VAT Retail Export Scheme

Reintroducing the VAT Retail Export Scheme would help UK retailers attract foreign shoppers by making UK-made products more affordable and accessible. This would be a critical step towards stimulating the UK’s export market and driving growth in the retail sector.

4. Enhanced Support for SMEs

SMEs form the backbone of the UK fashion industry and need more tailored support to navigate the challenges posed by Brexit. This includes financial support, training programs, and clearer guidance on dealing with post-Brexit regulations. Providing SMEs with the resources they need will help them remain competitive and sustainable in the long term.

5. Increase Domestic Production and Develop Alternative Market Opportunities

Encouraging greater domestic production and exploring new international markets will help reduce the UK’s reliance on the EU and boost the resilience of the fashion industry. Support for local manufacturers and designers, as well as creating opportunities in emerging markets such as the US, Asia, and Africa, will help to drive the growth of UK-based businesses.

Why This Matters: A Call for Action

For those of us in the fashion industry, the findings of this report are not just an assessment of where we are—they are a call to action. The recommendations laid out in the report provide a practical framework for policy changes that can address the ongoing challenges facing UK fashion businesses. Through strong collaboration, we can ensure that the voice of the fashion industry is heard in the halls of government and that the sector receives the support it needs to thrive.

As part of this effort, Fashion Roundtable is committed to advocating for these policy changes across both the UK and EU. Whether you are a designer, manufacturer, retailer, or policymaker, the time to act is now. The future of the UK fashion industry depends on swift and decisive action to address the challenges posed by Brexit. Together, we can create a more supportive, sustainable, and competitive environment for UK fashion businesses.

We encourage you to read the full report and to share it with your colleagues, policymakers, and anyone invested in the future of fashion. Our collective efforts will ensure that the UK remains a leader in fashion innovation, sustainability, and creativity.