Brexit’s impact on the British fashion industry has seen new challenges arise – from trading overseas, workforce shortages and operational logistics.
Fashion Roundtable’s recent report sheds light on the specific obstacles UK fashion businesses face. It also offers actionable recommendations to sustain the sector’s growth.
“Brexit has reshaped the UK fashion industry, but with collaborative efforts, we can mitigate its most challenging effects. While the current trade and workforce issues are considerable, there are viable pathways forward that could reinvigorate this crucial sector of the UK economy,” said Alix Coombs, Policy Researcher at Fashion Roundtable and Bath Spa University’s National Centre for Fashion and Sustainability.
Customs Barriers and Administrative Burdens
Post-Brexit customs processes have been a point of contention for many british fashion businesses. For example, there are heightened administrative costs and complex regulations for exporting to the EU. These customs barriers have increased lead times, caused delays in product deliveries and imposed new financial strains on fashion businesses.
The report recommeneds simplifying customs processes and negotiate with the EU to reduce tariffs specifically for fashion goods, addressing costly delays and barriers.
Talent Mobility and Workforce Shortages
Brexit has restricted freedom of movement, impacting the sector’s access to skilled creative talent. Without tailored visa pathways or streamlined mobility agreements, UK fashion companies are experiencing workforce shortages.
The report suggests establishing an immigration pathway tailored for fashion and creative industry professionals, and promote exchange programs that enable young talent and creative professionals to work and train across the UK and EU. This will help bridge the skills gap and maintain a steady flow of talent in the UK fashion industry.
Sales and Trade Declines
The lack of VAT-free shopping for tourists has diminished the appeal of UK fashion for international shoppers, particularly affecting high-street and luxury retail segments.
The report urges the government to reinstate the VAT Retail Export Scheme to allow tourists to claim VAT refunds on goods purchased in the UK.
It also urges the government to provide targeted financial assistance, grants and business support for small and medium-sized fashion enterprises to help them manage increased operational costs.
Mike Buckley, Director of the Independent Commission on UK EU Relations, commented: “Our new Government is rightly focused on improving growth, supporting UK industry and improving opportunities for workers. This report sets out concrete steps the Government could take to help the fashion industry thrive. We urge the Government to work with the fashion industry to that end.”
