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The UK is on the cusp of what’s expected to be a pivotal general election — not just for the country, but for the fashion industry, too.
Under the current Conservative government, the fashion and luxury industries have been squeezed by Brexit and the removal of VAT-free shopping. There have been growing fears over creative subjects being deprioritised in the Tory push for STEM (science, technology, engineering and mathematics) education. Emerging designers are struggling to survive amid the cost of living crisis, and many say they’d like to see greater investment from the government to help the UK’s fashion industry compete with the likes of France and Italy.
Ahead of the election, which is taking place on 4 July, the British Fashion Council (BFC) has identified five priorities for a new government to support economic and social growth, employment and opportunity in the fashion sector. The BFC is asking for the new government to restore tax-free shopping for tourists and reform business rates to boost growth in the fashion sector; invest in trade and export for UK fashion designers; support the fashion-education sector; develop a new generation of businesses and skilled workers in the industry; and introduce legislation to activate sustainable business practices and meet decarbonisation and net-zero targets.
Among the party manifestos, there are a number of topics that are polarising. On tax rates, the BFC says there should be a review of the system to incentivise rather than penalise the opening of retail premises. Immigration is another divisive topic: BFC CEO Caroline Rush says multiculturalism has been essential to the UK’s “leading reputation as a creative superpower” and urges the government to celebrate and support immigration to attract the best global talent. Many parties mention a push towards apprenticeship schemes. While Rush says she welcomes any initiatives to increase the visibility of careers in fashion, “the current model of apprenticeship provision isn’t dynamic enough for creative sectors like ours, nor is it easy to deliver in small companies”, and the BFC is keen to help the new government adapt the provision to be more suited to the fashion sector.
The BFC says it is hoping to cement its relationship with the new government in the first 200 days, by discussing its priorities and educating new MPs on “the huge benefits that a successful fashion sector can bring to the UK — economic growth, employment and promoting brand Britain around the world”.
It’s important to note that no party mentions fashion by name in its manifesto (Rush says it’s on the fashion sector to improve visibility), but much of what’s in the manifestos is likely to affect the industry. We break down what five key parties (Labour, Conservative, Liberal Democrat, Green and Reform UK) have to say on some of the most important topics concerning the fashion industry, pulling out promises from their manifestos on business and retail, sustainability, technology and the environment for creatives. (Please note, these are summaries of the relevant points and are not conclusive of each party’s entire vision. To understand more of the context around these specific policies, we recommend reading the manifestos in their entirety.)
Party policies:
Labour: ‘Stop the chaos and turn the page’
Labour says its economic approach is “pro-business and pro-worker”. The party uses the term “securonomics” to describe its strategy for building what it says will be a more resilient economic foundation — including securing supply chains and preventing future inflationary shocks — in partnership with business, trade unions, local leaders and devolved governments. Corporation tax will be capped at the current rate of 25 per cent and the business rates system in England will be replaced to “level the playing field between the high street and online giants, better incentivise investment, tackle empty properties and support entrepreneurship”.
Labour’s headline sustainability promise is to make the UK a “clean energy superpower” by creating a publicly owned clean power company (Great British Energy, headquartered in Scotland) to cut energy bills, create 650,000 green jobs and boost energy security, with £8.3 billion in capital, paid for by a windfall tax on oil and gas giants. This means investing in onshore and offshore wind, solar, hydrogen and marine energy, as well as carbon capture and storage.
On technology, Labour plans to support the development of artificial intelligence (AI), removing barriers to new data centres and creating a National Data Library to pool research and deliver “data-driven public services”. A new Regulatory Innovation Office would update technology regulations and “ensure the safe development and use of AI models”, banning sexually explicit deep fakes.
The manifesto emphasises breaking down barriers to opportunity and spreading growth across the country. Further Education colleges will become specialist Technical Excellence Colleges, working with businesses, trade unions and local governments to produce “the highly trained workforce that local economies need”. Alongside investment in education, young people will be guaranteed two weeks’ work experience, and access to training, apprenticeships or support into work.
For those already working, Labour vows to ban zero-hour contracts, end fire and rehire, and introduce basic rights to parental leave, sick pay, and protection from unfair dismissal for all workers, regardless of how long they have been at a company. The Low Pay Commission will account for cost of living for the first time, and the minimum wage will be standardised across age groups.
The party will also take action on late payments for freelancers, and remove barriers to capital and exports for small and medium-sized enterprises (SMEs). It will invest in research, professional services, advanced manufacturing and creative industries, the latter of which will benefit from a new creative industries sector plan.
Conservative: ‘Secure Britain’s future’
The heart of the Conservatives’s economic plan is developing a tax system that “incentivises businesses to invest” by improving access to finance and developing tax incentives and schemes that encourage businesses to grow through venture capital or seed investment, for instance. The party promises not to raise corporation tax or capital gains tax. The Conservatives also say they would “keep on removing EU laws from our statute book”. The party did not mention tax-free shopping for tourists.
If re-elected, the Conservative Party says it would remain committed to delivering net zero by 2050 — all while cutting costs for consumers by taking what they call a “pragmatic approach, guaranteeing no new green levies or charges while accelerating the roll-out of renewables”. The party would provide contract payments with bonuses to support wind energy firms, particularly those that manufacture in more disadvantaged places in the UK or have “sustainable” supply chains. The idea is to create more jobs and turn the UK into an electricity exporter. As part of its protection of rural areas, the Conservatives promise to tackle “our impact on illegal deforestation internationally”.
The Conservative Party wants to position the UK as a world leader in innovation, particularly in AI, by increasing public spending on research and development (R&D) to £22 billion a year, up from £20 billion this year and maintaining R&D tax reliefs to bring more SMEs into the innovation landscape.
In the social media landscape, the party will push forward with its Online Safety Act to protect children and will introduce further parental controls over access to social media.
The party’s manifesto encourages the uptake of STEM and technical subjects in education. There is no mention of creative subjects.
The party plans to crack down on “poor-quality university degrees that leave young people worse off”, particularly those with high drop-out rates and low employment prospects. Instead of pushing these subjects, the party would fund 100,000 apprenticeships. Apprenticeship schemes are a “key pipeline of talent into our world-leading creative industries” (the manifesto mentions the film, TV, gaming and music industries, but not the fashion industry).
The Conservatives promise to ensure there are tax incentives for the creative sector to remain competitive, and will ensure creators are “protected and remunerated for their work” while the government pursues opportunities in AI.
Liberal Democrats: ‘For a fair deal’
The Liberal Democrats are pro-Europe, and aim to rejoin the single market, fix the “broken” UK-EU trade relationship and remove “as many barriers to trade as possible”. Rejoining the EU is the long-term objective. The party is one of the few that promises to increase minimum corporation tax (from 15 per cent to 21 per cent).
The Liberal Democrats say they will invest in green infrastructure, including renewable energy (to ensure 90 per cent of the UK’s electricity is generated from renewables by 2030), zero-carbon transport, industry and housing. Liberal Democrats would also appoint a chief secretary for sustainability in the treasury, “to ensure that the economy is sustainable, resource efficient and zero carbon”.
The Liberal Democrats want to drive innovation when it comes to AI, but they will create a cross-sectoral regulatory framework for the technology. The framework will create certainty for AI developers, investors and users, while ensuring AI’s use of personal data is “unbiased, transparent and accurate” and protects people’s privacy.
If elected, the Liberal Democrats will include arts subjects in the English Baccalaureate (a set of subjects taken by the majority of secondary school students at GCSE). In line with their “internationalist” mindset, Liberal Democrats will also rejoin the Erasmus Plus study abroad programme and extend the Youth Mobility Scheme with the EU and grant full Settled Status to all those living in the UK with Pre-Settled Status.
Liberal Democrats also aim to tackle what they call “the late payments crisis” by requiring all contractors, companies and government agencies with more than 250 employees to sign up to “the prompt payment code”, making it enforceable to pay within a set time frame.
Green: ‘Real hope. Real change’
The Green Party’s economic and business policies underpin its aims to divest from fossil fuels and devolve power to local communities. Some of the top lines for fashion businesses include the Bank of England installing credit bans or ceilings for unsustainable activities, local authorities being able to reduce business rates for businesses considered economically and socially important to communities, and a £2 billion grant for small businesses addressing decarbonisation. The Green Party would dedicate additional funding to tackling the climate crisis, with an emphasis on soil health, circularity (re-use, repair, recycling and designing out waste) and decarbonising production, among other things.
Unsurprisingly, sustainability is a particular focus. The Green Party will push for wind power to provide 70 per cent of the UK’s electricity by 2030, with no new fossil fuel extraction and an end to fossil fuel subsidies. It also wants a just transition to a zero-carbon economy, with investment in upskilling and retrofitting sustainability, and terminating greenwashing, especially in biofuels. This includes a carbon tax “to make polluters pay”, which would increase over time, an international ecocide law, and a loss and damage fund to acknowledge the UK’s “particular responsibility for its high share of historic global emissions and as a former colonial power”. The party also takes aim at exponential growth, arguing that it is “actively undermining our well-being”, and a circular economy is needed to reduce waste and encourage a shift from ownership to usership.
If elected, the Green Party would introduce a Digital Bills of Rights, hoping to establish the UK as a leading voice on “the rules of law and democracy in digital spaces”. Alongside giving the public greater control over their data, this would regulate AI in line with the EU and Unesco to produce a “coordinated response”. It would also seek to address biases in AI, and protect the intellectual property (IP) of artists, writers, musicians and other creators. Crucially for fashion, the Green Party would “ensure that AI does not erode the value of human creativity and that workers’ rights and interests are respected when AI leads to significant changes in working conditions”.
Like Labour, the Green Party promises to invest in creative sectors. Its manifesto also outlines several workplace interventions aimed at reducing inequality and increasing well-being, including a £15 per hour minimum wage for all (with the costs to small businesses offset by increasing the Employment Allowance to £10,000), a 10:1 pay ratio between workers and CEOs, and legislation to grant workers full employment rights from day one. It also supports reduced working hours, moving towards a four-day working week.
One point sure to catch fashion students’ eyes is the push for a “speedy return” to free movement and reciprocal rights to work for EU and UK citizens, a reintroduction of Erasmus study abroad, and updated rules to allow migrants (including students) to be allowed to bring family members to the UK.
Reform UK: ‘Our contract with you’
If elected, Reform UK says it will reintroduce VAT-free shopping for tourists. They say the removal of this policy has cost the UK economy over £10 billion and deterred two million tourists.
To support SMEs, in the first 100 days of election, Reform UK would reduce corporation tax from 25 per cent to 20 per cent, further reducing it to 15 per cent from year three. In the long term, it plans to abolish business rates for high street-based SMEs, instead introducing a 4 per cent online delivery tax for multinational enterprises “to create a fairer playing field”.
Reform UK wants to scrap EU regulations, including those surrounding net zero and the environment. Much of Reform UK’s policies around sustainability involve scrapping net-zero goals and related subsidies (such as renewable energy levies), with the aim of boosting the economy instead. The party says its policies would save households £500 in energy bills each year and the public sector £30 billion per year over the next 25 years. Looking ahead, Reform UK plans to “fast track clean nuclear energy” and “increase and incentivise ethical UK lithium mining” for batteries, synthetic fuel and explore “clean-coal mining”.
The party also aims to replace Labour’s 2010 Equalities Act: “We will scrap diversity, equality and inclusion (DE&I) rules that have lowered standards and reduced economic productivity.”
Reform UK’s policies on technology are minimal, but it says it would launch an inquiry into the harm of social media on children within 100 days of taking power, and after would review the Online Safety Bill to crack down on social media giants that “push baseless transgender ideology and divisive critical race theory”.
To support the self-employed, Reform UK would abolish IR35 rules and cut entrepreneurs’ tax to 5 per cent. “Britain’s self-employed often work longer hours and take more risks. Many have no pension and receive no sick pay,” the manifesto says. The party would also scrap interest on student loans and extend the repayments period to 45 years, mandate two-year undergraduate courses, implement stronger minimum-entry standards for university courses and offer tax relief for businesses offering apprenticeships.
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