Why is the British Fashion Council urging the new UK government to invest in fashion?
The British Fashion Council (BFC) issued a formal appeal on 10 July 2024, urging the incoming administration to allocate dedicated funding, tax incentives and export assistance to protect a sector that contributes £35.8 billion to GDP and supports over a million jobs.
In a statement posted on its website, the BFC highlighted that the fashion industry accounts for 2.5 % of the UK’s total economic output, according to the Department for Business and Trade (DBT). The council warned that without a clear policy framework, the sector could lose competitiveness as global supply chains shift. The appeal aligns with broader calls for stimulus measures, echoing recent government urges for investment in key industries. The BFC’s request comes as the Labour‑led government prepares its first budget, where it is expected to outline support for creative sectors.
How much does the fashion industry contribute to the UK economy?
Official data show the fashion sector generated £35.8 billion in gross value added in 2023, representing about 2.5 % of the UK’s total GDP and employing roughly 1.2 million people across design, manufacturing and retail.
The Office for National Statistics (ONS) published the figure in its 2023 economic review, noting that the sector’s export earnings reached £12.3 billion, a 4 % rise from the previous year. The British Fashion Council’s own analysis corroborates these numbers, emphasizing the industry’s role in high‑value creative employment. By comparison, the UK automotive sector contributed £30 billion, underscoring fashion’s comparable economic weight.
These statistics are central to the BFC’s argument for targeted stimulus, as they demonstrate the sector’s resilience and growth potential despite post‑Brexit trade adjustments.
What specific measures is the BFC recommending for government support?
The council proposes a £500 million investment fund, expanded tax relief for sustainable material research, and a dedicated export promotion programme to help designers reach new markets, alongside a skills‑training grant for apprenticeships in textile manufacturing.
In its policy brief, the BFC outlines four pillars of support. First, a capital fund would provide low‑interest loans to emerging brands, reducing reliance on private equity. Second, tax credits for R&D on eco‑friendly fabrics aim to align the sector with the UK’s net‑zero targets. Third, the export programme would partner with the Department for International Trade to open trade missions in Asia and the Americas. Finally, a £150 million apprenticeship grant would address the skills gap identified by the Confederation of British Industry (CBI). The council argues that these measures together could boost sector growth by 6 % over the next five years.
How could increased investment affect employment in the fashion sector?
Analysts estimate that a £500 million fund combined with tax incentives could create up to 150,000 new jobs by 2029, primarily in sustainable manufacturing, digital design and international sales, while preserving existing roles threatened by automation.
A report from the Centre for Economic Performance (CEP) projects that each £1 million of targeted investment yields approximately 300 new jobs in the creative industries. Applying this multiplier, the BFC’s proposed fund could generate roughly 150,000 positions, many of them in regions such as the North West and Midlands where textile clusters exist. The report also notes that tax relief for green innovation is likely to attract foreign direct investment, further expanding the labour market. These employment gains would complement the sector’s current contribution of 1.2 million jobs, reinforcing its status as a major employer.
The potential rise in employment aligns with the government’s broader agenda to create quality jobs, a point the BFC highlighted when referencing recent statements that the government urges people to work from home where feasible, but also stresses the need for on‑site skilled manufacturing.
When is the government expected to respond to the BFC's call for investment?
The new administration is slated to publish its first post‑election budget in March 2025, and insiders expect a formal response to the BFC’s recommendations to be included in the upcoming industrial strategy review due by June 2025.
Following the July 2024 election, the Labour government has indicated that its fiscal plan will be presented in the spring. Sources within the Department for Business and Trade suggest that the fashion sector’s request will be part of a broader creative‑industry package. The BFC has scheduled a series of stakeholder meetings through the end of 2024 to refine its proposals before the budget. If the recommendations are adopted, the investment fund could be operational by the start of the 2025‑26 financial year, providing timely support ahead of the sector’s projected growth phase.
Analysts also note that the timing coincides with the government’s ongoing review of stimulus measures, a process that has previously included definitions of “government stimulus” and discussions on how such aid differs from standard tax policy.