The Commission is a time-bound research project that examines the impact of the UK departure from the European Union, the Trade and Cooperation Agreement (TCA) and the Windsor Framework.
UK SMEs, which comprise nine-tenths of the fashion industry there, are bearing the brunt of post-Brexit challenges and trade barriers, a report by the Independent Commission on UK-EU Relations says.
Complicated customs procedures, tariffs and higher operational costs hinder UK brands and businesses from competing effectively within the EU.
EU fashion professionals have left the UK workforce.
Brexit has introduced barriers to trade that are particularly problematic for SMEs, the report, titled ‘Fashion’s Future: How Brexit Has Reshaped The Fashion Industry And How to Reposition the UK as an Industry Leader’, notes.
Complicated customs procedures, tariffs and increased operational costs now hinder UK brands and businesses from competing effectively within the EU, historically their largest export market.
Consequently, UK exports to the EU have fallen sharply, while increased logistical costs and customs delays continue to affect production and sales.
Talent shortages further exacerbate these issues. EU nationals have left the UK workforce, while new visa requirements limit the ease with which UK professionals can work abroad. This has led to a decline in the collaborative opportunities that once fuelled innovation, and a shortage of skilled workers in the United Kingdom.
Additionally, young designers and graduates are losing access to EU-based internships and opportunities, affecting their global skill sets and diminishing the industry’s future talent pipeline, the report observes.
The report recommends simplifying cross-border movement of goods through improved customs processes and streamlined laws and regulations to aid businesses, particularly SMEs, and raise the country’s competitiveness in EU markets.
It suggests signing bilateral agreements to ease visa restrictions for creative professionals to facilitate international collaboration and support industry resilience, as well as provide increased opportunities for young workers in the fashion sector.
Restoring value-added tax-free shopping for international tourists would incentivise spending in the United Kingdom, providing a critical boost to luxury fashion brands, it notes.
UK SMEs also need financial assistance programmes to cope with rising costs and regulatory burdens that are difficult and time-consuming to navigate.
Finally, government investment in sustainable local manufacturing hubs would reduce reliance on EU imports, bolster regional economies and advance the UK’s sustainability goals, the report adds.
Fibre2Fashion News Desk (DS)