Upheaval in the UK Fashion and Textile Sector due to Brexit

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The UK's fashion industry is grappling with the aftermath of Brexit, as new red tape and trade disruptions threaten to jeopardise trading relationships with European and international partners.

According to recent findings, the EU is the largest trade partner for the UK's creative industries, accounting for more than 70% of UK fashion and textile exports. However, the new UK-EU trade agreement has resulted in increased costs, administrative burdens, and delivery delays, causing severe disruption to the UK-EU trade.

This has led to fashion businesses losing EU clients and some planning to establish distribution warehouses and branches in the EU at the expense of UK jobs. The struggle to adapt to the new agreement is particularly acute in the creative industries, which are mostly represented by micro firms.

The government's lack of concrete action to support the viability of the industry is a concern for several survey respondents. While the British government has taken limited specific measures directly targeting the prevention of talent drain in creative industries post-Brexit, the focus seems to be on broader economic support for industrial, energy, and infrastructure initiatives rather than targeted creative sector policies.

In an open letter to the UK's Prime Minister, Fashion Roundtable, a UK-based organisation representing the fashion industry, has asked for a simplification of the post-Brexit trading regime, recognition of the sector within the government's conversations, and financial support for the plethora of micro firms that cannot afford to trade with the EU.

The importance of accredited qualifications in journalism and higher education to the arts, culture, and heritage sectors has also been highlighted. Professor Dave O'Brien and Professor Nick Wilson have discussed the importance of these aspects in the context of the UK's creative industries.

On the positive side, investments in developing new skills and capabilities, upgrading product quality and production standards, as well as entering new production phases of the value chain, are expected to boost the confidence of those UK fashion designers and retailers that have seen their supply networks disrupted by Brexit.

Moreover, co-location of the Creative Industries with other industrial strategy priority sectors is being considered. This could potentially lead to synergies and opportunities for growth.

The Global Creative Economy Council, with Marta Foresti as the Chair, is involved in conversations between the Global North and South, aiming to promote the creative industries and encourage inward investments.

The Creative Industries Sector Plan has made several key sector-wide announcements, including the definition of a long-term sector-specific trade strategy. This strategy could include support in exhibiting at trade shows or niche events in key overseas markets or in making domestic fairs and events more appealing to an international audience, promoting exports and encouraging inward investments in the sector.

However, the road ahead is not without challenges. Recent evidence confirms the overwhelmingly negative consequences for the fashion and textile industry also in the post-Brexit scenario. Some respondents claimed to have experienced a slowdown of their businesses, with a reduction in profitability, investments, and labor force.

Market uncertainty, associated with the sterling's depreciation, is another major contributing factor. Only 3 per cent of firms stated to have been positively affected by Brexit with an increase in sales particularly to the EU and US.

Among fashion designers and retailers, some firms mentioned a decrease in orders from UK buyers, changes to delivery plans, delayed purchasing decisions, and a reduced ability to plan in advance and meet the demand of new potential European and overseas customers.

As the 2025 Spending Review's implications for the creative industries are being analysed, it is crucial for the government to address these concerns and provide the necessary support to ensure the viability and growth of the UK's creative industries.