The British Fashion Council outlines its top five priorities for the new UK government ahead of the July 4, 2024, election.
- Restoring the VAT Retail Export Scheme is crucial to maintaining the UK’s competitive edge.
- Reforming business rates and tax policies is necessary to boost brick-and-mortar retail.
- More trade and export investment is needed for UK fashion designers.
- There should be a commitment to STEAM in education to support fashion’s creative future.
- Legislation should push for sustainable practices to meet decarbonization goals.
In anticipation of the upcoming general election, the British Fashion Council (BFC) has articulated five principal demands that it wishes the forthcoming UK government to address. These priorities aim to enhance the competitive stance of the UK fashion industry on the global stage and catalyze its continued growth and innovation.
One of the most pressing issues identified is the need to restore the VAT Retail Export Scheme, commonly known as Tax-Free Shopping. The absence of this scheme places the UK at a disadvantage compared to other European nations such as France and Spain, where international visitor spending has surged. Restoring this scheme could potentially generate an additional £2.3 billion, fostering a more favorable environment for UK-based designers, retailers, and manufacturers.
Furthermore, the BFC advocates for an overhaul of the current business rates and taxation framework. The current system disproportionately affects physical and omnichannel retailers, placing them at a disadvantage compared to their online-only counterparts. A refreshed approach that encourages growth and investment in physical retail spaces, alongside fostering local community engagement, is deemed essential.
The BFC is also calling for increased trade and export investment opportunities for UK fashion designers. This includes greater support for the London Fashion Week international buyers and press program, financial backing to access international markets, and initiatives to ease trade barriers with the European market post-Brexit. Such measures are vital for maintaining the UK’s prominent role in the global fashion industry.
Crucially, the BFC underscores the importance of supporting the UK’s world-leading fashion education sector by embracing STEAM (Science, Technology, Engineering, Arts, and Mathematics) over the traditional STEM paradigm. By investing in arts education alongside more conventional academic areas, the UK can ensure sustained leadership in fostering creative talent and potentially create a million jobs by 2030.
Finally, the BFC urges the next government to implement legislation that will enforce sustainable business practices to align with decarbonization and net-zero targets. Given the global fashion market’s substantial environmental impact, the UK must adopt a regulatory framework that aligns with international standards, particularly those within the European Union.
The BFC’s manifesto encapsulates a vision for a robust and sustainable future for the UK fashion industry, urging necessary government intervention.
