Creative Industries: Creating Jobs and Productivity Growth

Lord Harlech Excerpts

Thursday 6th February 2025 Lords Chamber

[Lord Harlech (Con)]

My Lords, it is a pleasure to follow the noble Baroness, Lady McIntosh of Hudnall, and her very good speech. I declare an interest as an alumnus of Central Saint Martins, and my mother has worked in the fashion industry for over 30 years.

I will speak today on the invaluable contribution of the UK’s creative industries, specifically the fashion sector, to the Government’s growth mission, the creation of good jobs and productivity growth. Fashion is more than an art form; it is a powerful economic engine, an incubator of global talent, and a force for innovation and sustainability if done in the right way. It is an industry that deserves the full backing of government policy to realise its vast potential.

The United Kingdom is renowned for its dynamic and avant-garde fashion scene. For decades, our designers, from Vivienne Westwood to Alexander McQueen, have challenged conventions, set global trends and positioned Britain as a beacon of creativity. Our Northamptonshire shoemakers are the envy of the world. The ability of this sector to continually reinvent itself through a fusion of traditional craftsmanship and cutting-edge innovation—for example, the Manchester-based Private White V.C. and Hiut Denim in Wales—underscores its importance in the broader creative economy.

Beyond its cultural significance, the economic impact of UK fashion is formidable. The sector directly contributes £28.9 billion in GVA and employs more than 800,000 people. When considering its broader economic impact, it supports over 1.4 million jobs and £67.5 billion in GVA. Remarkably, fashion’s direct contribution surpasses that of the aerospace, defence and space industries combined. If we are serious about growth and job creation, this is an industry that cannot be overlooked.

However, to maintain and expand this success, targeted government intervention is essential. I urge the Government to consider the following measures. First, we must reinstate the trade show access programme and enhance embassy support for UK fashion companies abroad. Past programmes have demonstrated the significant returns on investment such initiatives can bring. Trade shows and sectoral missions empower businesses—particularly SMEs—to access international markets, driving growth and strengthening our global competitiveness.

Sustainability must be at the heart of our strategy. A textile-specific extended producer responsibility scheme would generate an estimated £150 million annually to fund circular business models, rewarding durability and penalising unsustainable practices, sometimes known as fast fashion. This is a vital step towards the Government’s aim of achieving net zero and aligns with our broader environmental commitments.

We need to increase funding for R&D, particularly through Innovate UK, with an emphasis on direct business benefits rather than solely academic research. Full funding for SMEs participating in innovation projects would democratise access to technological advancements and drive productivity across the sector.

Post-Brexit procurement rules should be reformed to prioritise UK manufacturers, particularly in the technical textile industry. This will strengthen our advanced manufacturing capabilities and bolster industries beyond fashion, such as healthcare and defence.

Vocational education must be placed on an equal footing with academic routes. A model akin to Switzerland’s system would ensure that the skills and growth levy effectively supports apprenticeships and training, addressing industry skill gaps and equipping our workforce for the future.

Reintroducing VAT-free shopping would provide an immediate boost to the UK’s fashion and textile industries. This policy would enhance tourism-related spending, benefiting both luxury brands and local manufacturers supplying these businesses.

Capital expenditure funding, as I said, should be directed towards expanding technical textiles and advanced manufacturing. Building on the success of the regional growth fund, such investment would reinforce the UK’s position as a leader in high-value manufacturing.

To conclude, our creative industries—and fashion in particular—are key drivers of economic growth, job creation and global influence. With strategic government support, the UK fashion sector can flourish, ensuring that our reputation as a powerhouse of creativity, innovation and sustainability endures for generations to come. I look forward to the Minister’s response, and to the three maiden speeches.