How Brexit made British fashion come undone

Before Brexit, UK fashion brands moved goods freely within the EU. Now, complex customs barriers have turned the sector’s largest export market into an uphill struggle. 

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.

Kate Hills, founder of Make It British, calls the shipping process “near-impossible” for SMEs due to prohibitive costs and bureaucracy. Many small brands, which lack the resources to absorb these costs, are considering moving operations to the EU, resulting in the loss of UK jobs and investment.

Fashion Roundtable’s survey shows that over 40% of respondents have seen their costs rise by more than 25% due to customs and administrative issues. For instance, one brand reports, “Sending samples has become prohibitively complicated, with customs challenges even to get an envelope of swatches to Spain.” 

With these added obstacles, production timelines have increased, supply chains have fractured, and domestic manufacturing jobs are in decline.

Brexit’s impact on the UK fashion workforce has also been profound. Previously, EU creatives could work seamlessly across borders, fuelling collaboration and innovation. Now, work visa requirements restrict UK designers, models, photographers, and other industry professionals to only 90 days within any 180-day period. 

This limitation complicates contracts and increases costs, especially for freelancers who need access to multiple EU countries within short timeframes.

As a result, UK businesses have lost access to skilled European professionals. Survey data reveals that 55% of fashion businesses report a reduced ability to work with EU-based talent due to visa restrictions, with over 60% of European staff leaving UK fashion roles over the past three years. The loss of these skilled workers is making it difficult for businesses to stay competitive with fashion hubs like Paris and Milan.

The effect on future talent is also stark. Brexit has disrupted traditional career paths for young UK creatives, as access to EU-based internships and training has diminished. 

The end of the Erasmus programme has further reduced opportunities for UK students to gain valuable work experience in EU fashion capitals. According to Sarah Mower MBE, Chief Fashion Critic at Vogue, “The chance to intern with top European companies was once a huge advantage for UK graduates starting out. Losing this has long-term impacts on the competitiveness of our workforce.”

Brexit has also hit the UK fashion sector’s bottom line. With the EU now out of reach for many, businesses have shifted focus to other regions or, in some cases, scaled back operations. 

For small brands, this loss of market access is particularly damaging. One industry leader reported that “trading with the EU has become virtually impossible for micro-businesses.” Another remarked, “Without an EU warehouse, shipping costs are too high for my brand to survive.”

Larger brands have resorted to registering as EU entities to retain market access, but this is a financially impractical option for SMEs. As one respondent explained, “I’m too small to manage a warehouse in the EU, but without it, I lose access to most of my customers.” 

Some UK fashion companies are now viewed by EU brands as the “cheap option,” with lower fees due to diminished demand for UK-based models and creatives.

The removal of the VAT Retail Export Scheme in 2021 has further disadvantaged UK luxury brands by driving international tourists to shop in European cities where VAT-free shopping is still available. Italy and Spain, for instance, have seen tourist spending rise by over 100% compared to pre-Brexit levels, while UK retailers struggle to attract these high-spending visitors.

Fashion Roundtable’s report outlines targeted recommendations to stem these losses and restore the UK’s fashion industry. Central to this is renegotiating trade and customs agreements with the EU to reduce barriers. 

Simplified export processes, especially for temporary exports of samples and collections, would reduce logistical costs and improve sales potential. Harmonising regulations with EU standards, such as Extended Producer Responsibility (EPR) rules, would also provide smoother access to EU markets and legal protections for UK brands operating abroad.

Reviving youth mobility schemes and educational exchanges, like Erasmus, would ensure that young UK creatives remain competitive on a global stage. Fashion Roundtable also advocates for the reintroduction of the VAT Retail Export Scheme, which would restore the UK’s appeal as a shopping destination for international tourists and boost high-end retail sales.

Increased government support for SMEs is also vital. Direct grants or tax breaks for fashion SMEs would help offset the mounting costs of trade regulations, and establishing government-backed export hubs within the EU could facilitate customs processes and market access for UK businesses.

Finally, investment in domestic production offers a long-term solution. Supporting local manufacturing could reduce reliance on EU imports, create jobs, and advance sustainability goals, a priority for UK brands and consumers alike.

Donald Trump’s return to the White House underscores a critical reality: Britain can no longer afford to rely heavily on the US as a dependable anchor in a shifting global landscape. 

His “America First” agenda, prioritising US interests even at allies’ expense, is a reminder that Britain’s future may rest closer to home. The UK needs reliable partnerships, and with the EU as its nearest trading bloc, re-engaging Europe could help British industries regain a measure of stability and competitiveness.  

The future of UK fashion, valued at nearly £110 billion, is now uncertain. Without decisive action, we risk losing an industry that defines Britain’s cultural identity and global influence. The sentiment from industry leaders is clear: 73% of survey respondents believe that Brexit-related challenges are weakening the UK’s competitiveness. As one respondent noted, “Everything costs more without any benefit—just disadvantages.”

The UK fashion industry’s resilience and creativity are undeniable, but in a post-Brexit world, these qualities alone are not enough. If the government acts on these recommendations, the sector can not only recover but thrive, positioning the UK as a global leader in sustainable and innovative fashion once more.

Michelle Kazi is a policy researcher at Fashion Roundtable. Its new report, published with the Independent Commission on UK EU Relations, is available here.