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UKFT urges Government to boost support for Micro and SME firms

14/07/2025

UKFT has submitted a comprehensive set of proposals to the House of Commons Business and Trade Committee, calling for urgent and meaningful support for micro and SME businesses across the UK fashion and textile industry.

Drawing on input from across the sector, the submission makes the case for targeted, practical measures that would unlock growth, drive exports and create a level playing field for UK-based businesses. This call for evidence is especially important as it includes provisions to support exporters.

Here is a summary of the key asks from UKFT on behalf of the UK fashion and textile industry:

  1. A new strategy for micro and small businesses
    Support that matches that of EU competitors, a fairer tax and business rates system, and a proper review of how SME policy is shaped and delivered.
  2. Better representation in Government
    Stronger roles for industry bodies in shaping policy and a shift away from generic SME advice to focused support for real businesses in real markets.
  3. Fair competition and access to finance
    Clear action to help smaller firms compete with large corporates and internationals – including tax reform, improved procurement access, and tailored finance for businesses under £250k turnover.
  4. Export support that works
    Reinstating the Tradeshow Access Programme, making UK Export Finance (UKEF) relevant to consumer goods, and ensuring Embassies deliver real support for SME exporters.
  5. Reviving the High Street
    Lower costs, VAT-free shopping for overseas visitors, and a new focus on encouraging and supporting independent retailers.
  6. Reducing cost pressures
    Action on energy, National Insurance and rent – plus targeted reliefs for UK-based manufacturing and retail businesses.
  7. Smarter tax and compliance
    A fairer tax system that supports rather than penalises UK production and ensures imported goods meet the same standards.
  8. Fixing business support
    Funding what works (like the Manufacturing Advisory Service), scrapping what doesn’t, and enabling industry to lead growth through government funding and convening power.
  9. Better access to investment
    Support for family-run and smaller businesses not yet ready for private investment, and practical export finance for trusted markets.
  10. Enabling smart productivity
    Access to relevant tech and innovation support tailored to the industry – not poor digital advice or irrelevant schemes.
  11. Joined-up government action
    Breaking down silos, working with industry, and focusing on the real needs of business, not just political targets.
  12. Measuring what matters
    Current Government targets do not align with normal business practices. UKFT has suggested an alternative way for the Government to assess success around how many micro and SMEs enter export and grow sustainably and how many of them expand into new markets.

Members: We want to hear from you

UKFT is committed to ensuring your voice is heard, and we will continue to press government to act on the real priorities for UK fashion and textile businesses. What issues do you believe the government needs to tackle? Together, we can ensure that our voices are heard and our concerns are addressed. Your input is invaluable – let’s work together to shape a better future for the entire fashion and textile industry here in the UK.

UKFT members: Email us at info@ukft.org

Voice of the Industry