Election 2024: the British Fashion Council’s manifesto wishlist

Drapers is canvassing designers, brands, retailers, suppliers and manufacturers for their key priorities for the next government and the responses will form the Drapers Fashion Retail Manifesto, which will be presented to politicians before the election on Thursday 4 July. What do you want from the new government? Email drapers@emap.com

In its 40th anniversary year, the British Fashion Council is calling for a reinstatement of the VAT Retail Export Scheme, reform of the business rates regime and greater investment and support for the industry from a new government.

Caroline Rush, CEO of the British Fashion Council, said: “The general election on 4 July has come at a crucial time for the fashion industry. Government engagement is much needed for our future success.

“As we celebrate LFW40, and prepare for June and September editions, it is a great moment to celebrate the diversity and impact of British fashion, while being realistic about the challenges that face the sector.

“The UK fashion industry has always been underestimated and underfunded by government. Whichever party forms the next government, there is an opportunity for a refresh, and we need support to design and deliver #FashionsFuture. We are world leaders culturally and creatively, and can be stronger commercially.”

David Leigh-Pemberton, deputy director – policy and engagement of the British Fashion Council

David Leigh-Pemberton, deputy director – policy and engagement of the British Fashion Council, said: “At the moment, these should be identified as the British Fashion Council’s election priorities to support #FashionsFuture. Now that we’ve confirmed the priorities, the BFC will be working at pace to produce a more detailed plan to share with candidates and parties.” Here are the BFC’s five priorities.

1 Restore the VAT Retail Export Scheme (also known as “Tax-Free Shopping”) and reform business rates to boost growth in the fashion retail sector

In the fourth quarter of 2023, retail spending in London’s West End was down 15%, despite international visitor numbers being level with the same period in 2019. By comparison, in France and Spain, international visitor spending has nearly tripled among certain nationalities since 2019.

The UK is now the only major economy in Europe not to offer tax-free shopping to overseas visitors. This places UK fashion designers, retailers and manufacturers at a significant competitive disadvantage compared with other markets.

While the Treasury is unwilling to look beyond its own projections on the impact of reinstating the VAT Retail Export Scheme scheme, independent research suggests that reintroducing the scheme would, in fact, deliver additional revenue of £2.3bn, rather than represent a loss to UK plc. The scheme must be restored to ensure competitive parity with neighbouring nations.

• Business rates and taxation

Currently, physical and omnichannel fashion retailers face significant competitive challenges against online-only retail, which is able to operate at reduced margins and with significantly fewer employees.

An incoming government should develop a long-term, dynamic business rate and business taxation strategy that incentivises growth and employment in bricks-and-mortar retail, drives activity on the high street, and deepens business engagement with local communities.

2 Greater trade and export investment for UK fashion designers

The BFC is calling for greater investment in the London Fashion Week (LFW) international buyers and press programme, financial support for designers to access international market weeks and trade shows, more targeted trade missions and a strategic approach to reducing trade barriers with the European market post-Brexit.

3 Support our world-leading fashion education sector with a commitment to STEAM, not STEM

Research has shown that globally six of the top 37 undergraduate fashion design courses and three of the top 16 graduate fashion design courses are in the UK.

With the right support, the cultural and creative industries could create an additional 1 million jobs by 2030. To do this, we need to ensure that the UK remains the world leader in creative education by supporting creativity in our schools and maintaining funding for arts, design and craft subjects in higher education. In practice, this means greater investment in arts subjects alongside science, technology, engineering and maths (STEM).

4 Develop a new generation of businesses and skilled workers in the fashion sector

The fashion industry spans design, manufacturing, retail and creative services. The UK is recognised as a crucial incubator of global fashion talent, with a network of world-leading creative academic institutions and the BFC’s Newgen initiative developing new creative businesses.

We are asking for support to continue our world-leading development schemes, and a commitment to work with us to develop a diverse, skilled workforce to future-proof the industry from product design to consumer engagement.

5 Introduce legislation to activate sustainable business practices to meet decarbonisation and net-zero targets

With the global clothing market frequently identified as the third-largest polluter in the world, the UK fashion sector is acutely aware of its impact on the environment and societies worldwide.

The BFC and Institute of Positive Fashion stand ready to work with the government to develop a practicable regulatory framework to activate better business practices addressing sustainability concerns, harmonised with international standards and regulations in other global markets, particularly the European Union.