Learning Your Fashion Timetables: The Economic Role of the Fashion Industry in the United Kingdom
Fashion Roundtable has just published a comprehensive report titled "Learning Your Fashion Timetables: The Economic Role of the Fashion Industry in the United Kingdom." This report aims to illuminate the vast contributions and future potential of the UK's fashion sector, emphasizing its role as a critical economic driver.
Introduction
The economic significance of the UK's fashion industry cannot be overstated. Fashion is not only the largest of the creative industries, contributing approximately £60 billion annually—nearly half of the total economic impact from the UK's creative sector—but it also plays a crucial role in regional growth, sustainability, and innovation.
Fashion as the UK’s Leading Creative Industry
It is well recognised that the United Kingdom has a world-leading creative industries sector. Growing at 1.5 times faster than the UK economy as a whole, the creative industries contribute £108 billion in Gross Value Added. However, the fashion industry stands out, contributing approximately £60 billion per year to the economy and employing 1.3 million people. This makes it the largest of the creative industries, surpassing even film and music in economic impact.
Fashion covers a myriad of policy issues, from better wages and protection for low-paid workers in the UK to environmental impacts and supply chain issues. Understanding the economic process behind an item of clothing—from material cultivation to retail—highlights why fashion is so economically significant.
Sustainability and Innovation in Fashion
Fashion's future is set to be shaped significantly by sustainability and innovation. As public concern about climate change grows, fashion is adapting swiftly:
Sustainable Manufacturing: New sustainable textile production methods are emerging, which are crucial for reducing the industry's environmental footprint.
Pre-Loved Clothing: The rise of second-hand fashion is creating new business streams, with platforms like Vinted gaining substantial market share.
Recycling Initiatives: Proper recycling of textiles can create jobs and reduce the use of virgin materials, promoting a circular economy.
Regional Economic Impact
Fashion also plays a vital role in regional economic development:
Growth in Scotland and Manchester: Scotland has seen 2,000 more fashion businesses open between 2021 and 2023, while Manchester has tripled its fashion industry employment from 2,000 to 6,000 people in the same period.
Levelling-Up Agenda: Fashion's geographical spread ensures that wealth and skills are distributed across the UK, supporting the government’s levelling-up agenda.
Key Recommendations for the Government
To harness the full potential of the fashion industry, the report outlines several strategic recommendations:
Prioritize UK Manufacturing: The government should focus on expanding domestic clothing manufacturing to boost economic growth.
Support Regenerative Practices: Introduce tax incentives to support sustainable practices, ensuring the development of skilled jobs.
Strengthen Environmental Regulations: Implement laws holding fast fashion companies accountable for their environmental impact.
Develop Recycling Infrastructure: Collaborate with the private sector to fund and develop recycling centers.
Foster Fashion Startups: Monitor the success of fashion startups and adapt educational curriculums to include essential business skills.
Incorporate Fashion in Devolved Powers: Ensure the fashion industry is considered in funding allocations and devolved powers to promote regional growth.
Conclusion
The fashion industry is a cornerstone of the UK economy and a major driver of regional growth and innovation. By implementing these strategic recommendations, the government can ensure the continued prosperity and sustainability of this vital sector. Fashion Roundtable urges all political parties to incorporate these recommendations into their policy frameworks to support the industry's significant economic and cultural contributions.
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Fashion impacts our economy, culture, and environment. Make your voice heard for a sustainable and inclusive future
Insightful Events: Fashion Roundtable at FAB-L in Leicester
Our Policy Researcher, Michelle Kazi, from Fashion Roundtable attended an insightful event hosted by FAB-L in Leicester. This event, in collaboration with ASOS, The Fashion Technology Academy, Just Good Work, Labour Behind the Label, The University of Manchester, Stronger Together’s Fast Forward, and Transform Trade, delved into the lives of garment workers and the collective efforts to support them.
Leicester's garment industry, with its potential, needs significant investment to thrive. Discussions emphasized the need for robust labour laws, industry regulations, and enhanced transparency to protect worker rights. Leicester’s reputation has been tainted by instances of exploitation, making legislative action crucial for promoting fair practices.
The UK fashion and textile industry contributes approximately £60 billion annually to the economy and supports 1.3 million jobs. The sector's extensive footprint supports regional economies, with significant contributions in London, the North West, and Scotland. The industry’s social impact is profound, offering employment to diverse demographics, including young people, older workers, and women.
FAB-L’s mission to support garment workers aligns with the broader goals of the fashion industry, which must pivot towards sustainable and ethical practices. The event highlighted the importance of addressing fast fashion trends and promoting sustainable alternatives. Collaboration between digital apps, education, and advocacy groups is crucial for creating a supportive ecosystem for workers.
Legislation plays a vital role in ensuring fair practices across the industry. Effective collaboration between lawmakers and brands is essential for developing a framework that promotes transparency and fairness. This approach is crucial for addressing the environmental and social challenges posed by fast fashion.
Fashion Roundtable’s ethos of reimagining a responsible, inclusive, and sustainable fashion industry aligns with the goals discussed at the event. Our work involves creating policy roadmaps, engaging with stakeholders, and advocating for systemic changes that promote social justice and environmental sustainability.
The event at FAB-L was a powerful reminder of the interconnectedness of all stakeholders in the fashion industry. It underscored the importance of community support, technological innovation, and legislative action in creating a fair and sustainable industry. At Fashion Roundtable, we are committed to advocating for policies that support garment workers and promote sustainable practices.
Fashion Roundtable Analysis of Party Manifestos: Labour, Conservative, Liberal Democrat, and Green
Missed our manifesto special newsletter? Fear not! Here's a comprehensive summary of how the major party manifestos for the 2024 General Election impact the UK fashion industry.
Impact of the Labour Party's Manifesto on the UK Fashion Industry
Summary: The Labour Party's manifesto presents several policies that could influence the fashion industry, focusing on economic stability, education, and sustainability. Despite these initiatives, the fashion industry, which significantly contributes to the UK economy, is notably absent from direct support in the manifesto.
Key Policies:
Economic Policies and Support for Businesses:
Windfall Tax on Oil and Gas Giants: Aims to generate revenue for public services but relies on a volatile sector, potentially affecting funding consistency for initiatives benefiting the fashion industry.
Removal of VAT Exemption and Business Rates Relief for Private Schools: Redirects funds to state education but may reduce disposable income for luxury fashion consumers.
Capping Corporation Tax at 25% and Ensuring Full Expensing for Capital Investments: Encourages investment in innovation and sustainability but lacks detailed support for SMEs in the fashion sector.
Employment and Skills Development:
Support for Creative Education: Aligns with STEAM recommendations but falls short on fashion-specific training programs.
Recruitment of 8,500 Mental Health Staff and Establishment of Young Futures Hubs: Promotes a healthier workforce but lacks focus on industry-specific health and safety improvements for garment workers.
Sustainability and Innovation:
Great British Energy Initiative: Aims to cut bills and boost energy security, aligning with sustainable practices, but logistical challenges may delay benefits.
General Commitment to Sustainability: 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.
Policies That Could Hinder Growth:
Restrictive immigration policies limiting international talent.
Increased taxes on certain sectors and reliance on windfall taxes raising costs for fashion businesses.
Big Win for the Fashion Industry:
Capping Corporation Tax at 25%: Encourages investment in innovation and sustainability within the fashion industry.
Impact of the Conservative Party's Manifesto on the Fashion Industry
Summary: The Conservative Party's manifesto includes policies focusing on economic support, employment, sustainability, and regional development. However, it introduces challenges related to immigration and regulatory changes that could impact the fashion industry.
Key Policies:
Economic Policies and Support for Businesses:
Maintaining Competitive Tax System: Promises not to raise corporation tax and to extend full expensing policies, increasing profitability for fashion brands.
Abolishing the Main Rate of Self-Employed National Insurance: Benefits self-employed individuals in the fashion sector by reducing their tax burden.
Employment and Skills Development:
Introduction of Craft and Design T-Levels: Addresses the skills gap in the fashion industry.
Funding 100,000 High-Quality Apprenticeships: Provides hands-on experience and supports initiatives for workers from diverse backgrounds.
Sustainability and Innovation:
Support for Sustainable Fashion Initiatives: Encourages regenerative practices and sustainable manufacturing processes.
Promoting Recycling and Circular Economy: Drives innovations in garment reuse and recycling.
Regional Development and Levelling Up:
Commitment to Regional Development: Supports fashion businesses outside London through targeted infrastructure investments and incentives for regional fashion hubs.
Setbacks and Challenges:
Legal Cap on Migration: Could restrict international talent essential to the fashion sector.
Cutting the Cost of Net Zero Transition: May slow down the adoption of sustainable practices within the fashion industry.
Streamlining Regulations and Reducing EU Red Tape: Could compromise standards ensuring sustainable and ethical practices.
Support for Creative Industries:
Investment in Digital and AI Technologies: Enhances digital marketing, e-commerce, and innovation, indirectly benefiting fashion.
Big Win for the Fashion Industry:
Maintaining Competitive Tax System: Supports profitability and investment in innovation and sustainability.
Impact of the Liberal Democrats' Manifesto on the Fashion Industry
Summary: The Liberal Democrat manifesto emphasizes green infrastructure investment, support for SMEs, and sustainability. However, it lacks explicit support for the fashion industry and presents challenges related to taxation and funding.
Key Policies:
Economic Policies and Support for Businesses:
Investment in Green Infrastructure and Support for SMEs: Fosters innovation and sustainability but could raise costs for energy-intensive fashion businesses.
Fair Taxation: Includes reforming capital gains tax and implementing a proper windfall tax on super-profits.
Sustainability and Innovation:
Tackling the Climate Crisis: Investment in renewable energy and circular economy aligns with sustainable fashion practices.
Home Energy Upgrade Programme: Aims to reduce carbon emissions and lower energy costs for fashion manufacturers.
Employment and Skills Development:
Improving Public Services: Proposals for more specialist teachers and mental health professionals in schools support STEAM education and address the skills gap in the fashion industry.
Increasing Benefits and Removing Caps: Supports garment workers' financial stability and well-being.
Social Policies:
Tackling Child Poverty and Supporting Pensioners: Creates a more inclusive workforce and aligns with recommendations for inclusivity in the fashion sector.
Enhancing Trade and Reducing Barriers:
Rebuilding Relationships with the EU: Reducing trade barriers and enhancing cooperation is crucial for UK brands.
Setbacks and Challenges:
Reliance on Volatile Energy Sector Revenues: Financial uncertainties could affect consistent funding for initiatives benefiting the fashion industry.
Lack of Explicit Support for Fashion-Specific Vocational Training: Critical gaps remain in the manifesto's support for the fashion industry.
Support for Creative Industries:
Emphasis on Arts and Culture: Broad support for creative industries but fails to address unique needs within the fashion industry.
Big Win for the Fashion Industry:
Investment in Green Infrastructure: Supports sustainable practices and innovation in the fashion sector.
Impact of the Green Party's Manifesto on the Fashion Industry
Summary: The Green Party's manifesto focuses on creating a fairer, greener society with policies addressing the climate emergency, promoting social justice, and enhancing public services. However, specific attention to the fashion industry is lacking.
Key Policies:
Sustainability and Innovation:
Commitment to Renewable Energy and Carbon Reduction: Aligns with the fashion industry's need for sustainable practices but lacks specific EPR policies.
Investment in Wind and Solar Power: Supports the transition to greener energy sources for fashion manufacturers.
Economic Policies:
Carbon Tax: Starting at £120 per tonne and increasing to £500 per tonne over ten years could significantly impact energy-intensive fashion businesses.
Wealth Tax on Assets Over £10 Million: Aims to redistribute wealth and fund public services but risks increasing operational costs.
Employment and Skills Development:
Commitment to Improving Social Support Systems: Benefits garment workers and low-wage employees by enhancing workers' rights and increasing the minimum wage.
Investment in Mental Health Services: Promotes overall well-being and indirectly benefits the fashion sector.
Regional Development:
Focus on Regenerating High Streets: Supports local fashion hubs and enhances local production.
Immigration and Inclusivity:
Lack of Flexible Immigration Policies: Essential for maintaining the industry's competitiveness and supporting frictionless travel for fashion creatives.
Creative Industry Pledges and Setbacks:
General Commitment to Supporting Creative Industries: Through public ownership of essential services and a fair economy, but lacks detailed plans for the fashion sector.
Ambitious Sustainability Targets: Align with environmental goals but may increase operational costs for fashion businesses.
Big Win for the Fashion Industry:
Commitment to Renewable Energy: Supports the fashion industry's shift towards sustainable practices.
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.
A third in almost every constituency to vote tactically as GetVoting.org goes live
In a UK general election first, Best for Britain’s jumbo-poll of more than 22,000 people and MRP analysis shows that at least a third of voters in 558 constituencies say they would vote tactically to change the Government.
Using the most up to date MRP polling, constituency level insights and expert analysis, Best for Britain has made recommendations for 451 candidates across Britain with the aim of dealing the heaviest possible electoral defeat for the Government to keep them out of power for at least a decade and to avoid the election of Reform UK MPs. GetVoting.org is the only tactical voting campaign with its own data.
Naomi Smith, CEO of Best for Britain and founder of tactical voting website, GetVoting.org said,
“Tactical voters have already changed the face of this election and by giving them the most accurate and up to date information, they can deliver a historic result on 4 July.
“GetVoting.org is now live and will help voters lock the Tories out of power for a decade and can stop Farage getting a foothold in parliament.”
Event: Groundswell - 26 & 27th June, Lannock Manor Farm, Hertfordshire
Back for it’s eighth year, Groundswell is a regenerative agricultural festival which provides a forum for farmers, growers, or anyone interested in food production and the environment to learn about the theory and practical applications of regenerative farming systems.
The two day event includes over 300 talks, forums and discussions as well as farm walks and demos. Check out the full schedule here