The Drapers Fashion Retail Manifesto highlights critical areas needing government attention to support the £62bn UK fashion industry.
- Business rates reform is a top priority, with industry leaders calling for equitable rates between physical and online retailers.
- Brexit’s unresolved challenges continue to affect trade, pressing for new government interventions.
- Innovative strategies, including tax-free shopping schemes, are essential to encourage spending in the UK.
- A push for sustainable practices and support for a skilled workforce form part of the manifesto’s key proposals.
The Drapers Fashion Retail Manifesto captures the collective voice of the industry, urging the government to address vital issues impacting the £62 billion fashion sector. This manifesto presents the needs of fashion businesses to the Labour, Conservative, and Liberal Democrat parties ahead of the general election.
A critical demand within the manifesto is the reform of business rates, particularly as the current multiplier increase is estimated to cost the industry £470 million this year. Fashion retailers, especially smaller businesses, find these costs burdensome. The call for equitable business rates extends to balancing the competitive advantage of online retailers.
Brexit has left the fashion sector facing substantial trade hurdles, especially with the European Union. The manifesto stresses the need for the government to revisit the Free Trade Agreement with the EU, as Brexit-related issues remain a significant challenge. Additionally, shipping costs and delays compound these difficulties, necessitating government collaboration with global shipping lines to mitigate inflation risks.
To revitalise consumer spending, industry leaders advocate for the reintroduction of the VAT Retail Export Scheme and propose a digital tax-free shopping system. These measures aim to eliminate the competitive shortfall UK retailers face compared to their European counterparts. An extension of the Geographical Indication scheme to include crafted products is also highlighted as a potential boost for historic industries.
Sustainability is another prominent focus, with the manifesto urging the government to implement incentives for renewable energy adoption and efficiency improvements. Such measures could significantly alleviate operational costs and carbon footprints for retailers. Additionally, reforming the Apprenticeship Levy would allow broader usage of funds, supporting diverse, accredited courses and covering hiring costs for apprentices, thereby fostering a skilled workforce.
The fashion industry’s contribution to the economy, providing 1.3 million jobs and generating £23 billion in tax revenues, underscores the importance of its sustainability and growth. Ensuring a living wage and banning exploitative contracts will support this workforce. Furthermore, tackling retail crime is essential, with calls for more stringent penalties and better protection for retail workers.
The Drapers manifesto offers a comprehensive framework for government action to secure the future of the UK fashion retail sector.
