Ahead of the Budget on 26 November, the UK Fashion & Textile Association (UKFT) has outlined its 2025 budget submission.

When announcing the date for the budget, The Chancellor of the Exchequer, Rachel Reeves, said: “We’ve got huge potential – world-leading brands, dynamic industries, brilliant universities and a skilled workforce. We’re a global hub for trade. Fixing the foundations has been my mission this past year.”

Adam Mansell, CEO of UKFT, said: “In that statement Rachel Reeves could have been describing our industry alone. Fashion and textiles bring together world-leading brands, dynamic businesses, creative talent and advanced skills that underpin the UK’s position as a global hub for design and innovation. As the Chancellor focuses on ‘fixing the foundations,’ we welcome the opportunity to show how a strong, sustainable fashion and textiles sector can help drive growth, exports and skilled employment across the country.”

Our submission outlines how the UK fashion and textile industry can help solve these challenges and create new opportunities for long-term growth.

Read on to discover a summary of our priorities and policies…

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, according to recent report from the UK Fashion & Textile Association (UKFT) and Oxford Economics.

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.

UKFT research shows that removing the barriers to innovation and R&D would have a significant impact on the sector delivering an additional £4.1 billion in GVA, 98,000 new jobs and £3.4 billion in additional tax. The research reveals that removing barriers to export growth could lead to an additional 160,000 jobs, £7.6 billion in GVA and £2.8 billion in tax take. Finally, removing the barriers to skills development would see GVA rise by £4.7 billion, create a further 98,000 jobs and raise £1.8 billion in tax. Adopting new UK centric public procurement rules would deliver much greater security of supply of critical products in to the defence, aerospace and health sector and would also safeguard and create thousands of jobs, stimulate long-term investment.

The proposals below have been built in consultation with companies throughout the fashion and textile supply chain.

Net Zero and Circular Economy: Introduce a textile-specific Extended Producer Responsibility (EPR) scheme. The government should prioritise the introduction of an EPR system for fashion and textiles. A pilot programme has shown that an intelligent EPR is deliverable and that it would not only see a significant reduction in the damage to the planet that the fashion is responsible for but crucially would raise significant funding significant revenue that could drive advances in sustainability and the circular economy. Modelling and pilot project shows an EPR system based on data and eco modulation not only drives a change in practice but could raise £1bn a year in funds to drive further adoption of circular business models – in particular adoption of closed loop recycling – the holy grail for the sector – and one that could unleash a huge new green textile industry. Business across the supply chain including all significant retailers are united in their call for a textile EPR in the UK. The recent announcement that the EU is to introduce mandatory textile EPR means businesses will already be faced with having to comply with a new regulation.

VAT-free shopping: Reintroduce VAT-free shopping to benefit the broad fashion and textile industry.This measure would not only boost tourism-related spending in key areas such as London and beyond, but also create opportunities for local businesses such as the UK manufacturers which supply the luxury brands.

Export Support: Reinstate the Tradeshow Access Programme and enhance embassy support for UK fashion and textile companies abroad. The simple, cheap and effective Trade Show Access Programme regularly achieved a ROI of £1:£40 and should be reinstated with significant funding. This would provide significant returns on government investment, as demonstrated by past programmes, and support UK businesses in global markets. UKFT firmly believes that international trade shows, combined with sectoral missions, are a powerful tool to help smaller companies start exporting and expand their businesses. This type of activity also helps larger companies enter new markets, increasing demand for UK fashion and textiles around the world.

Remove De Minimus ‘loop hole’ for direct-to-consumer imports that are neither sustainable or meet UK product safety rules.

Public procurement: Reform procurement rules to drive sovereign capability by prioritising UK manufacturers, especially in technical textiles, supporting advanced manufacturing capabilities across multiple sectors.

Innovation funding: Increase funding for R&D, especially through Innovate UK, to directly benefit businesses rather than focusing predominantly on academic research. UKFT also seeks full funding (100%) for SMEs participating in innovation projects, enhancing accessibility and encouraging technological advancements.

Greater support for R&D in industry: Targeted funding opportunities, clearer rules around R&D tax credits, and easier access for SMEs.

Employment costs: Addressing pressures linked to minimum wage levels, National Insurance contributions, and wider employment-related costs.

Ease impact of cost of living crises on families by maintaining VAT free shopping for childrenswear

Boost skills and creativity by simplifying rules on the use of Apprenticeship Levy funding – allowing levy funds to be used to support all relevant industry training

UKFT VOICE

UKFT is the largest network for fashion and textiles in the UK. As the industry’s leading trade association and Sector Skills Body, we are committed to delivering sustainable growth for the entire UK fashion and textile supply chain.

We bring together brands, designers, manufacturers, suppliers, retailers, recyclers, educators and innovators to promote their businesses and our industry, both in the UK and throughout the world.