LONDON — The British fashion industry’s sales and businesses have declined as a result of Brexit, according to a new report from the Fashion Roundtable and the Independent Commission on U.K. EU Relations.
The report found heightened customs barriers, administrative costs, a workforce shortage in specialized roles such as textile production, design and technical expertise, and the lack of VAT-free shopping for tourists have negatively impacted the industry’s growth.
“Brexit has reshaped the U.K. fashion industry, but with collaborative efforts, we can mitigate its most challenging effects,” said Alix Coombs, policy researcher at Fashion Roundtable and Bath Spa University’s National Centre for Fashion and Sustainability.
“While the current trade and workforce issues are considerable, there are viable pathways forward that could reinvigorate this crucial sector of the U.K. economy,” added the report.
Burberry in Shanghai.
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To improve industry conditions, the report recommended negotiating with the European Union to simplify customs processes, negotiate reduced tariffs for fashion goods, and establish an immigration pathway across the U.K. and EU for established and emerging creative industry professionals.
Domestically, the survey urged the government to reinstate the VAT Retail Export Scheme, increase financial assistance and grants for small and medium-sized enterprises that have been most impacted by Brexit, and to invest in British textile and garment manufacturers.
“Our new government is rightly focused on improving growth, supporting U.K. industry and improving opportunities for workers. This report sets out concrete steps the government could take to help the fashion industry thrive,” said Mike Buckley, director of the Independent Commission on U.K. EU Relations.