The fashion retail sector, a cornerstone of the UK economy, stands at a crossroad as it voices critical needs ahead of impending elections. This manifesto captures essential reforms and support required to sustain growth.
Urgency for Business Rate Reform
The call for business rates reform tops the agenda for UK fashion retailers. Nearly all industry leaders express the necessity to lower rates to alleviate financial burdens on independents and high street retailers. A projected cost of £470 million due to a rate increase to 54.6p underscores the critical need for change. Moreover, equitable treatment between physical stores and online retailers is a pressing demand, aiming for a fair marketplace. The reform of the Landlord and Tenant Act 1954 and introducing Stamp Duty Land Tax relief on retail transactions are pivotal steps recommended by industry leaders.
Navigating Post-Brexit Challenges
Nearly five years into Brexit, the fashion retail sector continues to grapple with international trade barriers. Among the top concerns is the Free Trade Agreement with the EU, which poses high costs for brands. Despite the ongoing general election campaigns, party leaders have largely sidestepped this crucial topic. Immediate attention is required to address the complexities ensuing from Brexit, particularly spiralling sea freight costs and logistical delays. These unresolved issues threaten to exacerbate inflation and financial strain. Collaboration with global shipping lines is essential to mitigate the impact on import costs and market stability.
Encouraging Consumer Spending
Proposals to stimulate the retail sector include restoring the VAT Retail Export Scheme and introducing a digital tax-free shopping system. “The UK stands alone in Europe without a tax-free shopping initiative,” lamented one industry leader. This gap puts UK fashion entities at a competitive disadvantage. Expanding the Geographical Indication scheme to encompass skilled crafts like Savile Row tailoring is another suggestion aimed at preserving traditional industries. Such innovations can potentially boost the industry by drawing international shoppers and valuing the UK’s unique fashion heritage.
Fresh ideas are essential to revitalise the industry. The reinstitution of tax-free schemes is just one way to incentivise consumer spending. Protection and promotion of traditional crafts under the Geographical Indication scheme further highlight the necessity to foster innovation alongside heritage.
Sustainability and Environmental Responsibility
Sustainability remains a core focus for fashion retailers, demanding government policies that advocate renewable energy use and improved energy efficiency. Financial support—via grants or tax incentives—could significantly reduce retailers’ costs during their transition to sustainable models. The push for governmental action to facilitate decarbonisation highlights the sector’s commitment to environmental responsibility. Industry proposals for legislation aim at incentivising sustainable practices to meet net-zero targets, underscoring the critical role of governmental backing in achieving these objectives.
Retailers are calling for enhanced government intervention in the sustainability arena. This includes support to offset the costs of embracing eco-friendly practices. Meeting net-zero targets is not just an aspiration; it’s a necessity as per industry experts.
The vision for a sustainable future requires a solid partnership between the government and the industry. By offering financial incentives, businesses can transition smoothly towards greener operations, thus aligning economic goals with environmental stewardship.
Revamping the Apprenticeship System
There’s a strong push for the overhaul of the Apprenticeship Levy, deemed inadequate by many industry voices. The current levy structure—a 0.5% charge on large employers—acts as a de facto employment tax and lacks flexibility. The industry advocates for a reformed system that allows spending on diverse, accredited training options to better align with business needs. Support in covering the cost of apprentice recruitment and training is also essential. This aligns with the goal of nurturing future talent, ensuring that the UK remains a hub for fashion innovation and expertise.
Apprenticeships should cater to modern business demands. Expanding training options could bridge skill gaps and enhance workforce quality.
Strengthening Workforce Support
Industry leaders are urging the government to develop pathways for nurturing future creative talents. The fashion sector’s role as a global talent incubator is well acknowledged. Proposals include backing national development schemes to cultivate a skilled and diverse workforce. Calls for implementing a true living wage reflective of actual living costs and banning exploitative zero-hours contracts are particularly pressing. Recognising the value of the UK’s workforce will be crucial in fortifying the industry.
A fairer treatment of workers involves not only financial considerations but also job security and professional growth. Industry leaders stress the need for policies that provide comprehensive support for fashion professionals.
The industry’s future prosperity hinges on nurturing a skilled workforce. Ensuring equitable conditions will foster creativity and sustain the UK’s reputation as a leader in fashion.
Addressing the Retail Crime Epidemic
The rampant retail crime poses a significant challenge, prompting urgent action from the government. Industry voices call for prioritisation of retail crime in policing strategies and cooperative initiatives among local forces. Introducing a standalone offence for abusing retail workers and elevating the seriousness of shoplifting are critical measures proposed. Such steps would not only protect the workforce but ensure a safer retail environment for businesses and consumers alike.
The outlined proposals underscore the urgent need for strategic governmental support to ensure the continued success of the fashion retail industry. Collaboration between policymakers and industry leaders is imperative.
