The fashion industry in the UK is facing a multitude of challenges, from uncertainty over business rates reform to the impact of Brexit on international competitiveness. Both independent retailers and large flagship stores are feeling the strain, with concerns about the prioritization of investment in critical areas like manufacturing, sustainability, and circularity.
One of the most pressing issues is the UK’s declining competitiveness on the global stage. Export-driven fashion businesses are grappling with trade friction, tariffs, and a lack of government support for international growth. The removal of VAT-free shopping has been particularly damaging, affecting tourism, luxury spending, and the overall attractiveness of the UK as a shopping destination.
As businesses navigate a volatile global market with dwindling confidence, decisions made in the upcoming budget will have a significant impact on the industry’s ability to remain competitive both domestically and abroad. Trade bodies, lobbyists, brands, and manufacturers in the British fashion and luxury sectors are collectively calling for support in key areas.
Laura Weir, CEO of the British Fashion Council (BFC), emphasizes the importance of government support for the industry. The BFC acknowledges the funding commitments outlined in the Creative Industries Sector Plan but highlights the ongoing challenges faced by businesses. Weir urges the chancellor to introduce measures that would reduce costs, open up opportunities, and support growth in the sector. This includes calls for a VAT Retail Export Scheme to incentivize international spending, reduced business rates for retail and creative businesses, increased export promotion funding, and investment in creative skills and education.
Joshua Schulman, CEO of Burberry, echoed the sentiment of pride in British heritage and the brand’s significant presence in the UK. With facilities in London and a manufacturing facility in Yorkshire, Burberry is a key player in the British fashion landscape. The brand, like many others in the industry, is looking to the government for support and policies that will enable continued growth and success in the face of ongoing challenges.
As the industry awaits the announcements in the 2025 Autumn Budget, the hope is that the government will prioritize measures that support the growth, competitiveness, and sustainability of the British fashion sector. By addressing key concerns and providing targeted support, the UK can maintain its position as a global leader in fashion and luxury.
