The True Value of the UK Fashion & Textile Industry — and Why It Needs Government Backing

The UK fashion and textile sector remains a major economic, social and environmental asset, however its full potential is still not being realised, particularly when it comes to manufacturing, skills and strategic resilience.

UK Fashion & Textile Industry Data:

• According to a 2023 report by UKFT (UK Fashion & Textile Association), the fashion & textile industry contributes about £62 billion to UK GDP. 
• It supports around 1.3 million jobs nationally. That includes 260,000 in “creating & making” (design, development, manufacturing) and over 1 million in distribution, retail, aftercare. 
• Its regional footprint is broad: London (210,000 jobs), North West, Yorkshire & Humber, South West, etc. 
• Manufacturing jobs are fewer in number but critical: around 88,000 employed in manufacturing in fashion & textiles in England, Wales, and Scotland. 

How Factories Stepped Up During COVID — Then Were Largely Ignored

During the COVID‑19 pandemic, many UK factories and manufacturers retooled or expanded capacity to produce PPE (personal protective equipment). Government sources show that:

• According to GOV.UK the UK signed contracts to manufacture over 2 billion items of PPE domestically as part of efforts to ensure supply resilience. 
• Thousands of UK firms were approached or responded to calls to supply PPE; many ramped up machinery, took on extra staff, changed production lines.

However, after the immediate crisis, problems emerged:

• Many domestic producers found themselves locked out of subsequent contracts. Midlands manufacturers, for example, formed a “Midlands PPE Collective” and reported being ignored in favour of imports or large intermediaries. 
• According to Parliament UK Public Accounts Committee report flagged that between February and July 2020, 32 billion items of PPE were ordered, some MP’s concerns being that government over‑ordering and overseas sourcing undermined the domestic manufacturing base. 
• There was also large waste or loss: “unused PPE” worth over £1.4 billion was found to have been stored inappropriately or disposed, reported by the BBC.

This suggests a mismatch: the UK had factories and skilled capacity, but after initial domestic procurement, many contracts turned outward or were awarded to firms without local capacity, leaving many UK makers underused once the rush subsided.

Decline in Traditional Manufacturing Hubs

• Leicester is one of the most vivid examples: once home to 1,500 garment factories employing 15,000 workers, today only 96 factories remain in some parts, and far fewer jobs. 
• Many factories closed as demand for “new” fashion dropped, costs rose, and many retailers shifted production overseas. 

Why Domestic Manufacturing Still Matters and What’s Needed

Skills, Innovation, Jobs

• The UK retains much of the skills base: design, pattern cutting, technical roles, textile engineering etc. Retaining and strengthening this is essential for innovation, speed to market, sustainability, craftsmanship.

Environmental & Resilience Advantages

• Producing closer to home helps reduce transportation emissions, supply chain risk, lead times, quality control.
• Also, a shorter, more transparent supply chain makes sustainable and ethical compliance easier.

Government Role & Policy Gaps

• Domestic manufacturers need ongoing contracts, not just crisis‑response orders. Regular procurement by NHS, military uniforms, PPE stockpiles, etc, should consider UK‑made as default where feasible.
• Barriers include higher costs, infrastructure gaps, ethical/standards compliance, volatility of demand. Brands and government need to collaborate on “reshoring for real” strategies. UKFT’s report “Reshoring for Real” (2025) outlines that brands are increasingly interested in domestic production, especially in areas like knitwear, jersey, printing, etc., but they need consistent volume to make UK manufacturing viable. 

What Must Change: Recommendations

1. Government procurement policy reform
   Require a proportion of PPE / uniform / health sector contracts to go to UK manufacturers by default; ensure tenders are accessible to small and medium manufacturers.
2. Support infrastructure and investment
   Grants, tax incentives, subsidised capital investment, updating machinery, R&D for sustainability (e.g. lower‑carbon fabrics, circular models).
3. Skills development
   Technical education, apprenticeships, vocational training to fill gaps in sewing, weaving, cutting, pattern technologies, sustainable textile science.
4. Ensure ethical and environmental standards are met
   While boosting domestic capacity, oversight must be strong so that “cheap UK” does not degrade into “cheap and exploitative”.
5. Long‑term contracts & demand signals
   Manufacturers need predictable volume to justify investment. Government, large retailers and brands need to commit to orders over multiple years rather than spot‑contracts.

The UK fashion and textile industry is hugely valuable: economically, socially, environmentally. The capability to make PPE, military garments, uniforms, fashion garments is still here, the skills are here, the factories are here. What has been missing is consistent policy support and procurement practices that recognise, reward and build that domestic capability.

If government aligns its procurement, skills policy and industrial strategy to include fashion/textiles/manufacturing, the UK could rebuild a more resilient, sustainable, and prosperous industry, especially in places such as Leicester, the North West, London and others. Home‑soil production isn’t a luxury it’s a necessity, for jobs, security, ethics and the planet.