Fashion industry contributes £62bn in GDP new report reveals

One in every £34 total gross value added contribution is generated by the UK fashion and textiles industry, a new report commissioned by trade body UKFT has revealed.

Created by Oxford Economics, The Fashion and Textile Industry’s Footprint in the UK report, shows that the industry contributes £62 billion in GDP and supports one in every 25 jobs, as well as generating £1 in every £30 of HMRC’s total tax receipts in 2021.

The landmark study marks the first comprehensive assessment of the sector on the UK, examining its economic impact, social contribution and environmental sustainability. It reveals that UK fashion and textile industry is one of the largest sectors in the country and its influence extends around the world. 

A new fashion or textile product – which could range from a pair of jeans, Savile Row suit or designer dress through to a medical mask, upholstered car seat or next-generation fabric used in space – involves hundreds of people co-operating with each other to bring an idea to life and into the hands of the final consumer.

The activities of the people involved can be broadly categorised into two main areas: “creating and making” and “distribution, retail and aftercare”. The report found that approximately 260,000 jobs are supported through design, development and manufacturing (“creating and making”), while one million jobs are supported through distribution, retail and aftercare.

It reveals that fashion is a particularly strong employer of women and young people, with 540,000 women employed in the sector and 197,000 people under the age of 25. But it also supports a significant number of people over the traditional retirement age with 52,000 over-65s working in the sector.

Additionally the sector's footprint extends nationwide. The regional breakdown of those employed in fashion is as follows:

• 210,000 jobs in London
• 140,000 jobs in the North West
• 120,000 jobs in Yorkshire and the Humber
• 110,000 jobs in the South West
• 100,000 jobs in Scotland
• 56,000 jobs in Wales
• 40,000 in Northern Ireland

The report confirms that the UK fashion and textile industry has the potential to play a pivotal role in the nation’s next phase of economic growth. The sector could support an additional £15 billion in GVA, generate 100,000 more jobs and contribute £5 billion in tax receipts if it returns to its 2019 size.

However challenges remain including international trade barriers, skills shortages, training investment gaps and sustainability hurdles. If these obstacles are addressed, the industry has the potential to expand its socioeconomic footprint, aligning with broader objectives like “Levelling Up”.

Adam Mansell, CEO of UKFT, said: “This report highlights for the first time the vital contribution that the fashion and textile industry makes to the UK economy and society as a whole, and its potential for future growth and positive impact. With the right support, the industry stands poised to lead the way for post-covid recovery, emphasising its resilience and adaptability.”

The specific contribution that fashion makes to the capital will be revealed later this morning at an event with the Greater London Authority and London’s Deputy Mayor for Culture and the Creative Industries Justine Simons OBE, at ApparelTasker in Bromley By Bow.

Find out more about the report here.

Main image: Mark Fast at London Fashion Week