Fashion’s Future: How Brexit Has Reshaped the Fashion Industry and How to Reposition the UK as an Industry Leader

Alix Coombs; Michelle Kazi

This report, published with the Independent Commission on UK-EU Relations, examines the impact of Brexit on the UK's fashion industry, highlighting challenges such as increased trade barriers, customs delays, operational costs, and talent mobility restrictions. Increased costs from tariffs, delays, and burdensome paperwork have hit small- and medium-sized enterprises (SMEs) the hardest. According to the report, UK clothing and footwear exports to the EU plummeted from £7.4 billion in 2019 to £2.7 billion by 2023 – a striking 60% drop. With the UK fashion sector valued at £109.9 billion and employing over 714,000 people, the report emphasizes its economic and cultural significance. It presents targeted recommendations for revitalizing the sector, including improving trade agreements, reinstating the VAT Retail Export Scheme, supporting SMEs, and enhancing domestic production. Combining quantitative data and stakeholder insights, the study aims to inform policymakers and industry leaders on strategies to maintain the UK's global leadership in fashion.