The UK Fashion & Textile Association (UKFT) has sent its submission to HM Treasury as part of the UK Government’s Spending Review, urging the government to invest in the UK fashion and textile industry to unlock growth, support local jobs and future-proof the sector. Scroll down to see our key policies and priorities to represent the industry.

The new Labour Government has reconfirmed its commitment to working closely with businesses and we’re excited to be part of the conversation. As the largest network for fashion and textiles in the UK, we’re in a great position to help shape policies that support sustainable growth and bring benefits to our whole sector.

Since the election, UKFT has been deeply engaged in representing the industry through meetings with ministers, civil servants and stakeholders, focusing on government relations, policy input and advocating for industry-specific needs. This work spans the UK, Europe (via Euratex) and even the US, ensuring a broad influence in shaping policies relevant to fashion and textiles.

We have highlighted in very stark terms the impact that the National Insurance (NI) increases have had on the industry and the knock-on effect this will have on new recruitment.

Another key focus has been educating ministers, who are often less familiar with the sector compared to civil servants. UKFT has emphasized the diverse applications of textiles, from luxury fashion to advanced manufacturing, aiming to change how the government perceives the industry. While fashion is usually categorised under creative industries or retail, textiles transcend boundaries, impacting advanced manufacturing and technology. One of aims is to shift this narrative to highlight textiles as an enabling technology critical to various sectors.

UKFT’s seven key priority and policy areas:

The government’s recent industrial strategy and comprehensive spending review offer opportunities to align the industry with national priorities like advanced manufacturing and net zero. Here we have outlined our seven key priority and policy areas:

• Export Support: Reinstate the Tradeshow Access Programme and enhance embassy support for UK fashion and textile companies abroad. 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.
• Net Zero and Circular Economy: Introduce a textile-specific Extended Producer Responsibility (EPR) scheme that rewards durability and penalises unsustainable practices. As outlined by our whitepaper last year, this type of system could generate £150 million annually to fund circular business models and promote sustainability in the industry.
• 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.
• Public procurement: Reform procurement rules post-Brexit to prioritise UK manufacturers, especially in technical textiles, supporting advanced manufacturing capabilities across multiple sectors.
• Skills development: Push for reforms in vocational education to place it on equal footing with academic routes, using models like Switzerland’s system. This includes changes to how the Skills and Growth Levy supports apprenticeships and training.
• 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.
• Advanced manufacturing investment: Advocate for capital expenditure (CapEx) funding to expand technical textiles and advanced manufacturing capabilities. This proposal builds on the success of the Regional Growth Fund and highlights the sector’s potential to serve diverse industries.

On international trade, our close relationship with the Department for Business and Trade has been instrumental in shaping trade negotiations with countries like India, South Korea and Canada. We are focused on ensuring rules of origin and preferential tariffs benefit UK manufacturers. We focus on shaping trade policy to make international trade more beneficial and accessible for fashion and textile businesses.

Additionally, we also chair and co-chair a range of government roundtables on skills and manufacturing. We are increasingly asked for input around areas like chemical regulations and as an example, we recently delivered a significant presentation on PFAS to the Department for Environment, Food and Rural Affairs (DEFRA).

One of the most notable achievements last year was the six-year extension of the Climate Change Levy (CCL) scheme, saving the textile industry £6 million annually. This success underscores UKFT’s role in advocating for policies that drive energy efficiency and sustainability in the sector.

Looking ahead, we plan to reinvigorate the All-Party Parliamentary Group (APPG) for Fashion and Textiles, engaging backbenchers and peers to address industry challenges. We are also working to highlight the sector’s technological and innovative contributions through storytelling. For instance, sharing stories like producing fabrics for aerospace or the medical sector demonstrates the industry’s advanced capabilities, helping policymakers understand its breadth and potential.

Why this matters

The UK fashion and textile industry directly supported a £62 billion contribution to UK GDP, 1.3 million jobs across the country and raised more than £23 billion in tax revenues, according to the ‘The Fashion and Textile Industry’s Footprint in the UK’ by Oxford Economics and commissioned by UKFT.

But despite our progress, we face ongoing supply chain difficulties, international trade barriers, skills shortages and mounting global competition.

We believe these strategic recommendations will bolster our industry, support local employment and solidify the UK’s reputation as a leader in designing, making and selling ethical, sustainable and cutting-edge fashion and textiles, while upholding the rich heritage and innovative spirit of our sector.

Representing your views

UKFT members: Help us to help you by sharing your unique innovations and achievements. By showcasing cutting-edge technologies, AI applications and other advancements, we can position our sector as a leader in both advanced manufacturing and sustainability. We also need to hear the challenges you face, the trade barriers and blockages that are limiting your potential so we can raise these on your behalf. If you would like further information or would like to be involved in any specific areas of work mentioned above, please do get in touch by emailing info@ukft.org

Not yet a member? For details on how to become a member, visit www.ukft.org/membership