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Grant and Hills are among those also arguing for a change in value-added tax (VAT) rules. “You could do something very simple like vary the VAT based on the amount of local content [in a product],” Grant suggests. “You would actually be generating more tax by incentivising the creation of local jobs.” Asked whether the government has any plans to introduce targeted tax incentives to encourage investment in fashion and textile production in the UK, a spokesperson for the Treasury pointed to its commitment to cap corporation tax at 25 per cent (across all industries). “We are a pro-business government determined to provide the stability needed for businesses, including fashion and textiles, to make long-term investments and support our Plan for Change [the policy aims Prime Minister Keir Starmer presented to Parliament on 5 December 2024] by kickstarting growth,” the spokesperson said.Retro 90S Caleb Williams Iceman Jumpman Shirt
On procurement, a spokesperson for the Cabinet Office said the government’s new ‘National Procurement Policy Statement’, published in February, is making it “easier for the £400 billion spent each year in public procurement to be focused on local British firms”, but did not elaborate further. Reviving the UK’s fashion manufacturing sector doesn’t hinge on government policy and funding alone. The support and investment needed is likely to come from a blend of public and private sources, including brand-led or industry consortia, and impact investors focused on sustainability. Collaboration across sectors — linking fashion with agriculture, education and innovation — is unlocking new types of funding, particularly for projects focused on circularity, regenerative systems and supply chain transparency.
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