Meanwhile, uncertainty over business rates reform threatens both independent retailers and large flagship stores. The industry is also concerned that investment in critical areas — from manufacturing and ‘Made in the UK’ infrastructure to circularity and sustainability innovation — may be deprioritized if the budget focuses on fiscal tightening over industrial strategy.
Perhaps the most pressing concern is that the UK has become less competitive internationally, particularly post-Brexit. Export-driven fashion businesses face ongoing trade friction, tariffs and weak government support for international growth. Removing VAT-free shopping is repeatedly cited as a major drag on tourism, luxury spending and overall UK attractiveness.
With business confidence down and companies operating in a volatile global market, decisions on tax, trade and industrial support will significantly shape whether British fashion can remain competitive at home and abroad.
Here’s what British fashion and luxury trade bodies, lobbyists, brands and manufacturers want to see from the 2025 Autumn Budget.
Laura Weir, CEO of the British Fashion Council (BFC)
British fashion is a cultural powerhouse and a significant economic driver for the UK, but it continues to face significant challenges post-Brexit and Covid. The BFC values the UK government’s funding commitments for the fashion sector outlined earlier this year in the Creative Industries Sector Plan; however, businesses still encounter difficulties in these tough times, and the budget offers an opportunity for the government to further support growth, opportunities and employment in this vital £67.5 billion sector.
The BFC has urged the chancellor to announce measures that would reduce costs and open up opportunities for British businesses. These include introducing a VAT Retail Export Scheme to incentivize international spending in the UK market, reducing business rates for retail and creative businesses, increasing export promotion funding for the fashion sector, and investing in creative skills and education.
Joshua Schulman, CEO of Burberry (from Burberry’s Q2 earnings call)
We are very proud of our British heritage, and we are proud to be a significant employer in Britain with our facilities here in London, with our stores, with our store network, and of course, with our manufacturing facility in Yorkshire.