Drapers Fashion Retail Manifesto presents your views for the election

Drapers, the voice of the fashion retail industry for more than 136 years, has canvassed individuals,

businesses and industry bodies to find out what support the sector needs from the next government.

We have compiled the Drapers Fashion Retail Manifesto, showing the support that the fashion retail industry – which is worth £62bn annually to the UK economy – needs to continue to thrive.

Our industry supports 1.3 million jobs and raises £23bn in tax revenues, data from the UK Fashion and Textiles Association (UKFT) and Oxford Economics shows.

On behalf of the fashion retail industry, Drapers asks you to include these proposals in your manifesto for the upcoming election and looks forward to your response.

Business rates

The overwhelming priority for fashion retail is business rates reform. Of the industry leaders we have spoken to, almost all say that lowering business rates is vitally important for both independents and high street multiple retailers. The increase in the business rates multiplier to 54.6p from 1 April will cost the industry an estimated £470m this year, which it can ill afford.

Although taxation has been central to the debate between the Conservatives and Labour, neither party has adequately addressed high business rates and the significant financial strain on retailers, particularly small and independent businesses. Sector leaders also want business rates to be more equitable and for the next government to level the playing field between bricks-and-mortar shops and online retailers, which can operate at reduced margins and employ fewer staff.

Leaders also called for reform of the Landlord and Tenant Act 1954, and for the introduction of Stamp Duty Land Tax relief on retail property transactions.

Post-Brexit and international trade

Few would argue that the UK leaving the European Union after the 2016 referendum has been a smooth transition. It has been nearly five years since then prime minister Boris Johnson’s vow to
“get Brexit done”, but the fallout persists from the UK leaving the world’s largest trading bloc.

One issue high on the agenda for the fashion retail sector is the Free Trade Agreement with the EU and the high cost for brands trying to trade with wholesale customers in Europe and direct to consumer markets. So far in the election debate, Brexit has hardly been mentioned by party leaders, but the next government must address the elephant in the room as Brexit is far from done and dusted.

Although the Red Sea crisis is a vast and complex issue, the new government needs to prioritise helping to find a solution. Importers face spiralling sea freight costs – which, in some cases, have doubled in recent weeks – as well as significant delays, as ships are routed around the Cape of Good Hope, rather than via the Suez Canal. The UK government needs to work with global shipping lines to resolve this issue, which, unchecked, could cause prices and inflation rise later in the year.

Big thinking to encourage spending

Retail bosses want fresh ideas to boost business, such as the reinstatement of the VAT Retail Export Scheme (also known as “Tax-Free Shopping”) and the introduction of a digital tax-free shopping scheme. One leader says: “The UK is now the only major economy in Europe not to offer tax-free shopping to overseas visitors”, this is placing UK fashion designers, retailers and manufacturers at a “significant competitive disadvantage”.

Other proposals include extending the UK’s Geographical Indication (GI) scheme – an intellectual property right used on products with qualities or characteristics attributable to a specific geographical origin – for example, Scotch whisky or Stilton cheese. Geographical Indication should include skilled craft manufacturing, such as Savile Row tailoring, to help protect and promote historic industries.

Support the green agenda

Sustainability, the environment and climate change continue to be key areas of importance for business. The next government needs to implement policies to incentivise the adoption of renewable energy or improve energy efficiency, to help retailers reduce their costs and carbon footprints.

Government support – in the form of grants or tax incentives – could help businesses offset expenses as they transition to more sustainable business models, while also encouraging more business owners to adopt sustainable practices. The next government should introduce legislation to “activate sustainable business practices to meet decarbonisation and net-zero targets”, says one industry lobby group.

Apprenticeship Levy overhaul

Industry heads have called for reform of the Apprenticeship Levy – a contribution of 0.5% of an employer’s annual pay bill for companies that have a wage bill of more than £3 million – saying it is “not fit for purpose”. The current scheme – which was also dubbed as “little more than an employment tax on retailers” – is under-utilised by retailers and needs to be more flexible for employers.

The new government needs to expand the levy, allowing businesses to spend funds on a wider range of high-quality, accredited courses, say experts. Also, support is needed to cover costs associated with hiring an apprentice – for example, for backfilling roles while the apprentice is on off-site training.

A better deal for workers

Sector experts have urged the new government to develop the next generation of skilled creative workers to ensure the industry continues to thrive. Politicians need to recognise the important role the fashion industry plays – for designers, manufacturers and retailers – and the UK’s position as an incubator of global talent.

Leaders are calling on the next government to better support the UK’s “world-leading development schemes”, to ensure a diverse and skilled workforce and future-proof the industry.

Other calls include the introduction of “genuine living wage based on the cost of living” and a ban on exploitative zero-hours contracts.

Tackling crime

The next government must take urgent action to tackle, what has been dubbed, the “retail crime epidemic”. MPs must support the police in their efforts to tackle retail crime at a national level. Retail crime should be a priority in Police and Crime plans, local police forces must work with other policing stakeholders to ensure the standalone offence for assaulting a retail worker is used (once introduced).

Leaders have also called for “an end to shoplifting of goods worth less than £200 being dealt with as a lesser offence”. The shopworkers’ union also wants the introduction of a standalone offence of abusing and assaulting store employees in England, Wales and Northern Ireland, that mirrors existing legislation in Scotland.

Signed on behalf of Drapers,

Gabriele Dirvanauskas, acting editor