Fashion Roundtable Analysis of Party Manifestos: Labour, Conservative, Liberal Democrat, and Green
With a specific focus on their impact on the UK fashion industry
Our team at Fashion Roundtable has been diligently analyzing the recently released party manifestos for the 2024 General Election. Below, we present our detailed analysis on the Labour, Conservative, Liberal Democrat, and Green Party manifestos, with a specific focus on their impact on the UK fashion industry. Additionally, we provide party-specific recommendations and highlight overlapping suggestions for fostering sustainable growth in the sector.
Impact of the Labour Party's Manifesto on the UK Fashion Industry
Introduction
The Labour Party's manifesto for the 2024 General Election outlines several policies and initiatives with significant implications for the UK fashion industry. This analysis delves into the manifesto's key elements, their potential impact on the fashion sector, and highlights how these policies align with or hinder the recommendations from the Sector Vision Report by Fashion Roundtable. Despite the party's aim to champion creative industries, the fashion industry, which significantly contributes to the UK economy, is notably absent from the manifesto. This analysis emphasises the need for Labour to recognize and include fashion in its plans for comprehensive and inclusive growth.
Economic Policies and Support for Businesses
The Labour Party's proposal to implement a windfall tax on oil and gas giants is intended to generate significant revenue to fund public services. This move, though ambitious, hinges on the volatility of the energy sector, creating a potential for uncertain revenue streams. This unpredictability could affect the consistency of funding for initiatives that indirectly benefit the fashion industry, such as infrastructure improvements and energy cost reductions.
The manifesto also suggests removing VAT exemption and business rates relief for private schools, aiming to redirect these funds towards state education. While this could bolster public education, it might reduce disposable income for families with children in private schools, potentially affecting luxury fashion consumption. Moreover, this policy does not address the need for targeted investment in vocational training specific to the fashion industry.
Capping corporation tax at 25% and ensuring full expensing for capital investments could provide stability for businesses, encouraging investment in innovation and sustainability initiatives within the fashion industry. This aligns with the Sector Vision Report's call for tax incentives for companies with positive social and environmental contributions. However, the manifesto lacks detailed plans on supporting SMEs in the fashion sector, especially in navigating post-Brexit challenges and securing consistent orders.
Employment and Skills Development
The Labour Party's commitment to supporting creative education, including arts and music in schools, aligns with the Sector Vision Report's recommendation for STEAM education. Nevertheless, the manifesto falls short of explicitly committing to fashion-specific training programs. Accelerating the implementation of vocational training in craft and design could address the current skills gap in the fashion industry.
The recruitment of 8,500 mental health staff and the establishment of Young Futures hubs are crucial for public health and indirectly benefit the fashion sector by promoting a healthier workforce. However, these measures do not focus on industry-specific health and safety improvements for garment workers, leaving a critical gap in the support for the fashion industry's labor force.
Sustainability and Innovation
The manifesto's promise to establish Great British Energy aims to cut bills and boost energy security, aligning with the fashion industry's shift towards sustainable practices. However, the logistical challenges and initial investment required for this initiative might delay its benefits. The Labour Party's general commitment to sustainability and reducing carbon footprints supports broader environmental goals but lacks specific measures targeting the fashion industry's environmental impact, such as Extended Producer Responsibility (EPR) for fashion and textiles. More detailed policies and incentives for sustainable fashion practices are needed to fully align with the Sector Vision Report.
Regional Development and Levelling Up
The Labour Party proposes various measures to support high streets and local businesses, which aligns well with the Sector Vision Report's recommendations for regenerating high streets and supporting local procurement. Targeted support for regional fashion hubs could foster local industries and economic growth. Additionally, supporting UK manufacturing through public investment is a positive step. Encouraging local production and procurement aligns with the Sector Vision Report, yet the manifesto does not detail specific commitments to securing consistent and secure orders for the fashion sector.
Policies That Could Hinder Growth
Restrictive immigration policies could limit the flow of international talent essential to the fashion sector, potentially stifling creativity and innovation. Our Sector Vision Report emphasizes the need for flexible immigration policies to maintain the industry's global competitiveness. Moreover, increased taxes on certain sectors and reliance on windfall taxes, while aiming to generate revenue, could increase costs for fashion businesses, particularly those dependent on energy-intensive processes, potentially hindering growth and innovation within the sector. Balancing taxation policies to ensure they do not disproportionately impact the fashion industry's ability to invest in sustainability and growth is essential.
Support for Creative Industries: Missing Focus on Fashion
Despite its critical role as the largest and most economically significant creative industry, fashion is notably absent from the Labour Party's 2024 Manifesto. As the party aims to champion the creative industries, it's essential to question: where is the support for fashion, which contributes significantly to the UK economy? The UK fashion and textile industry contributes £62bn to the UK economy or the equivalent of £1 in every £34 of the UK’s total gross value added (GVA) contribution. The sector supports 1.3 million jobs, which equates to 1 in every 25 jobs in the UK, and raises more than £23bn in tax revenues or £1 in every £30 of HMRC’s tax receipts. The UK fashion and textile industry is one of the largest sectors in the country, and its influence extends around the world.
It's time for Labour to recognize and include fashion in its plans for the creative sector to ensure comprehensive and inclusive growth. Fashion Roundtable is ready to work with Labour to put the fashion industry at the forefront of the creative sector, recognizing its significant economic contributions and ensuring comprehensive support for its growth and sustainability.
Impact of the Conservative Party's Manifesto on the Fashion Industry
Introduction
The Conservative Party's manifesto outlines several policies and initiatives with significant implications for the UK fashion industry. This analysis delves into the manifesto's key elements, their potential impact on the fashion sector, and highlights how these policies align with or hinder the recommendations from the Sector Vision Report. Additionally, we incorporate Fashion Roundtable's additional recommendations to ensure a comprehensive perspective on the necessary steps to support the industry.
Economic Policies and Support for Businesses
The Conservative manifesto emphasizes maintaining a competitive tax system, with a promise not to raise corporation tax and to extend 'full expensing' policies when fiscal conditions allow. Lower corporate taxes will increase profitability for fashion brands, enabling further investment in innovation and sustainability initiatives. This aligns with the Sector Vision Report's recommendation for tax incentives for B Corps and companies with positive social and environmental contributions.
The manifesto also proposes abolishing the main rate of self-employed National Insurance by the end of the Parliament. This will benefit the numerous self-employed individuals in the fashion sector, reducing their tax burden and potentially increasing disposable income, which could be reinvested into their businesses.
The commitment to maintaining and enhancing R&D tax credits supports the development of sustainable materials and advanced manufacturing processes, aligning with our recommendation for greater investment in UK manufacturing and consistent, secure orders.
The focus on securing favorable trade deals with non-EU countries and ensuring the EU meets its commitments under the Trade and Cooperation Agreement (TCA) could open new markets for UK fashion exports. However, complexities around rules of origin and tariffs remain a concern. The Sector Vision Report recommends frictionless travel and bilateral agreements with EU member states to support the movement of fashion creatives and goods. Rejoining the Erasmus+ Programme and securing a cabotage exemption for the creative and cultural sector are also crucial steps to facilitate easier movement of goods and personnel across borders.
The manifesto promises various financial aids, including a £4.3 billion business rates support package over the next five years. Tailored financial aid, especially post-Brexit, will help fashion SMEs mitigate challenges and promote growth, echoing our call for secure and consistent orders and investment in UK manufacturing. Similar to the support provided to the fishing industry, the fashion sector could benefit from tailored financial aid to ensure consistent and secure orders, supporting on-shoring and strengthening public procurement.
Employment and Skills Development
The Conservative Party's manifesto emphasizes the introduction of Craft and Design T-Levels. Accelerating the implementation timeline will address the current skills gap and ensure a steady pipeline of skilled workers for the fashion industry. Our Sector Vision Report supports a return to STEAM education and aligning business needs with university and FE college training.
The commitment to funding 100,000 high-quality apprenticeships will provide essential hands-on experience, aligning with our recommendation for initiatives to help UK workers from working-class backgrounds access training and employment in the creative industries. Additional initiatives are needed to ensure access to training and employment for workers from diverse and underrepresented backgrounds.
The manifesto includes a commitment to streamlining visa processes for skilled workers. Easing visa requirements for fashion creatives and garment workers will help maintain the industry’s global competitiveness. The Sector Vision Report emphasizes the need for restriction-free movement and waiver visas for creative workers, ensuring frictionless travel for fashion creatives and businesses between the UK and EU member states, and secure bilateral agreements to support the industry’s talent pool.
Sustainability and Innovation The manifesto supports initiatives aimed at reducing the environmental impact of fashion. Encouraging regenerative practices and sustainable manufacturing processes will help the industry transition towards greener operations. Our report highlights the importance of Extended Producer Responsibility (EPR) and investment in sustainable fashion practices. The UK committing to EPR to support the transition to Net Zero by 2050 and incentivizing sustainable practices through tax reliefs and grants is crucial.
Promoting recycling and the circular economy will drive innovations in garment reuse and recycling, reducing waste and environmental footprint. This aligns with our recommendation for developing recycling infrastructure and supporting circular economy practices. Developing a comprehensive recycling infrastructure and promoting circular economy practices, including financial incentives for companies investing in sustainable and circular production methods, are vital steps.
The manifesto highlights investment in digital technologies, such as AI and automation. This enhances efficiency in production and supply chain management. Support for digital platforms facilitates the growth of online fashion retail, in line with our Sector Vision Report calling for a robust policy framework for AI and support for creative intellectual property (IP). Establishing a long-term focused and robust policy framework for AI and support for creative IP to protect the industry’s innovations and contributions is essential.
Regional Development and Levelling Up
The manifesto's commitment to regional development aligns well with the fashion industry's potential to drive economic growth across the UK. Fashion businesses outside London, particularly in regions like Scotland and Manchester, could benefit from targeted support to foster local industries. This includes infrastructure investments and incentives for regional fashion hubs. The Sector Vision Report supports regenerating high streets and local procurement to bolster regional economies. Investing in regional fashion hubs and infrastructure to support local economies and ensuring that local procurement and high street regeneration are prioritized are key steps.
Setbacks and Challenges
The Conservative manifesto includes a policy to introduce a legal cap on migration. This could restrict the flow of international talent essential to the fashion sector, potentially stifling creativity and innovation. Our Sector Vision Report emphasizes the need for a flexible immigration policy to maintain the industry’s global edge.
The manifesto commits to cutting the cost of net zero for consumers. While pragmatic, this approach may slow down the adoption of sustainable practices within the fashion industry, which are crucial for long-term environmental goals.
The promise to streamline regulations and reduce EU red tape could, while reducing bureaucracy, also compromise standards that ensure sustainable and ethical practices in the fashion industry.
Support for Creative Industries
The Conservative Party pledges to support the creative industries, emphasizing the need to back cultural and artistic endeavors through various initiatives. However, there is a lack of direct, detailed policies specifically tailored to support the fashion industry within the broader creative sector. The focus on promoting digital and AI technologies could benefit fashion by enhancing digital marketing, e-commerce, and innovation. Additionally, investment in regional development and infrastructure indirectly supports the creative industries, including fashion, by fostering a supportive environment for local businesses to thrive.
Impact of the Liberal Democrats' Manifesto on the Fashion Industry
Introduction
The Liberal Democrat manifesto for the 2024 General Election includes numerous policies that could significantly impact the UK fashion industry. This analysis delves into the key elements of the manifesto, their potential impact on the fashion sector, and how they align with or hinder the recommendations from the Sector Vision Report by Fashion Roundtable. The analysis also underscores the absence of direct support for the fashion industry, despite its significant economic contributions.
Economic Policies and Support for Businesses
The Liberal Democrats propose substantial investment in green infrastructure and support for SMEs, which could benefit the fashion industry by fostering innovation and sustainability. Enhancing the British Business Bank and providing local banking support could help fashion SMEs secure the necessary funding for growth. The focus on fair taxation, including reforming capital gains tax and implementing a proper windfall tax on super-profits, could redistribute wealth and provide more equitable economic conditions, indirectly supporting the fashion industry.
However, the manifesto’s approach to taxation, such as increased taxes on certain sectors, might raise costs for fashion businesses, particularly those reliant on energy-intensive processes. This could potentially hinder growth and innovation within the sector, making it crucial for the Liberal Democrats to balance their tax policies to avoid negatively impacting the fashion industry’s ability to thrive.
Sustainability and Innovation
The manifesto emphasizes tackling the climate crisis through investment in renewable energy, zero-carbon transport, and the circular economy. These initiatives align with the fashion industry's shift towards sustainable practices. The proposed Home Energy Upgrade programme aims to reduce carbon emissions, potentially lowering energy costs for fashion manufacturers. However, the manifesto lacks specific measures like Extended Producer Responsibility (EPR) for fashion, which are crucial for reducing the industry's environmental impact and ensuring alignment with Net Zero goals by 2050.
Employment and Skills Development
The Liberal Democrats' commitment to improving public services includes proposals for more specialist teachers and mental health professionals in schools, aligning with the Sector Vision Report’s call for STEAM education. These policies could help address the skills gap in the fashion industry. Additionally, increasing benefits and removing caps could support garment workers by improving their financial stability and well-being. This comprehensive approach to enhancing the workforce could ensure a more resilient and capable fashion industry.
Social Policies
The manifesto’s focus on tackling child poverty, supporting pensioners, and improving benefits for disabled people can create a more inclusive workforce. Increasing Carer’s Allowance and expanding eligibility, along with better support for disabled people, aligns with the Sector Vision Report’s recommendations for inclusivity in the fashion sector. These policies could help attract and retain a diverse talent pool in the industry, fostering a more equitable work environment.
Enhancing Trade and Reducing Barriers
The Liberal Democrats propose rebuilding relationships with the EU, which includes reducing trade barriers and enhancing cooperation. This is particularly relevant for the fashion industry, which has been significantly impacted by Brexit-related trade frictions. Simplifying trade processes and restoring access to the EU market is crucial for UK brands. Additionally, simplifying visa requirements for fashion creatives is essential for maintaining the UK’s status as a global fashion hub, allowing seamless movement of talent and fostering international collaboration.
Setbacks and Challenges
Despite its strengths, the manifesto presents several challenges. The reliance on volatile energy sector revenues to fund public services introduces financial uncertainties that could affect consistent funding for initiatives benefiting the fashion industry. Additionally, the absence of explicit support for fashion-specific vocational training and the lack of detailed EPR commitments leave critical gaps in the manifesto's support for the fashion industry.
Support for Creative Industries
While the Liberal Democrats pledge to support creative industries, the fashion sector—despite its significant economic contributions—receives little direct attention. The manifesto emphasizes support for arts and culture broadly but fails to address the unique needs and opportunities within the fashion industry. Expanding on these pledges to include specific measures for the fashion industry could significantly enhance the sector’s growth and sustainability.
Impact of the Green Party's Manifesto on the Fashion Industry
Introduction
The Green Party's 2024 manifesto emphasizes creating a fairer, greener society with substantial implications for various sectors, including the fashion industry. Their policies focus on addressing the climate emergency, promoting social justice, and enhancing public services. However, the fashion industry requires specific attention to align with these broader goals and support the sector's sustainability and growth. Here’s how the manifesto’s key points might impact the fashion industry:
Sustainability and Innovation
The Green Party's strong commitment to renewable energy and carbon reduction aligns well with the fashion industry's need for sustainable practices. Their plan to invest in wind and solar power, along with phasing out fossil fuels, supports the fashion sector's transition towards greener energy sources. However, the manifesto lacks specific measures such as Extended Producer Responsibility (EPR) for fashion, which is crucial to reducing the industry's carbon footprint and aligning with Net Zero goals by 2050. Including fashion-specific EPR policies would incentivize sustainable practices and help the industry meet environmental standards.
Economic Policies
The proposal for a carbon tax starting at £120 per tonne and increasing to £500 per tonne over ten years will significantly impact fashion businesses, particularly those heavily reliant on energy-intensive processes. While this encourages a shift towards greener production methods, it also raises costs for companies, potentially affecting their profitability. The introduction of a wealth tax on assets over £10 million and public ownership of essential services aims to redistribute wealth and fund public services. These economic measures could indirectly support the fashion industry by fostering a more equitable economy, but they also risk increasing operational costs.
Employment and Skills Development
The manifesto's emphasis on social justice includes a commitment to improving social support systems, which could benefit garment workers and low-wage employees in the fashion sector. Increasing the minimum wage and enhancing workers' rights align with the Sector Vision Report’s call for decent work conditions in the fashion industry. Additionally, the investment in mental health services and a trained counsellor in every school can create a healthier workforce, indirectly benefiting the fashion sector by promoting overall well-being.
Regional Development
The Green Party's focus on regenerating high streets and supporting local businesses aligns with recommendations for revitalizing local fashion hubs and enhancing local production. Investment in infrastructure and public transport can facilitate easier movement of goods and people, benefiting fashion businesses that rely on efficient logistics. However, specific commitments to secure consistent orders for UK-made fashion products are necessary to strengthen local manufacturing and support the industry's growth.
Immigration and Inclusivity
The Green Party’s manifesto does not address the need for flexible immigration policies essential for maintaining the industry's competitiveness. Supporting frictionless travel for fashion creatives and securing bilateral agreements with EU member states are crucial steps to ensure the sector’s vitality post-Brexit.
Creative Industry Pledges and Setbacks
The Green Party’s manifesto includes a general commitment to supporting the creative industries through public ownership of essential services and a fair economy. However, there are no explicit commitments or detailed plans that address the unique needs of the fashion sector. The manifesto's ambitious sustainability targets, such as the carbon tax and renewable energy investments, align with broader environmental goals but may increase operational costs for fashion businesses. Furthermore, the absence of specific policies to support innovation, technological advancement, and global competitiveness within the fashion industry could hinder growth and limit the sector's ability to adapt to evolving market demands.
Shared Recommendations for All Parties
To foster sustainable growth in the fashion sector, all parties should:
Implement detailed EPR policies for fashion to support the industry's transition to Net Zero by 2050.
Reinstate the VAT Retail Export Scheme to boost the economy and restore the competitive edge of UK brands.
Enhance support for on-shoring initiatives and secure consistent orders for UK-made fashion products.
Develop targeted programs for inclusivity in the fashion sector, focusing on training and employment for diverse backgrounds.
Negotiate favorable trade agreements with the EU to ease post-Brexit challenges and ensure frictionless trade.
Encourage regenerative farming and circular economy models through financial incentives and grants.
Invest in regional fashion hubs and infrastructure to support local economies and manufacturing.
Establish robust AI and IP policies to protect creative intellectual property and support technological advancements in the fashion industry.
Address rules of origin issues with clear guidelines and support to ensure UK products qualify for tariff-free access.
Enhance support for recycling and circular economy initiatives with detailed policies and financial incentives for companies investing in sustainable practices.
Develop government-backed initiatives for international market expansion to help UK fashion brands compete globally.
For more detailed recommendations, please refer to our Sector Vision Report. Fashion Roundtable stands ready to collaborate with all political parties to place the fashion industry at the forefront of the creative sector, recognizing its significant economic contributions and ensuring comprehensive support for its growth and sustainability.