Onshoring: Fashion and Textiles

Debate between Shockat Adam and Sarah Olney

Thursday 12th February 2026 Westminster Hall

[Sarah Olney]

The Minister’s sedentary intervention gives me a good opportunity to say that the hand knitting industry supports many jobs in many rural areas, right across the country, including Northern Ireland, Scotland and Wales. However, I have spoken to the people who own Knit With Me, the amazing knitting shop on Richmond Hill of which I am a regular customer, and they tell me how much harder it has become to send some of their amazing products abroad since Brexit. Of course, pure wool is an animal product, which falls under those regulations, so the customs requirements to send packages to the EU have become so much more challenging for them. I am therefore here just as much to stand up for the knitting industry—I am literally standing up in my hand knitted top—although that is not quite what the debate is about, so I beg your pardon, Ms Jardine.

The Liberal Democrats recognise the urgency to transform the way in which fashion operates. We must reduce pollution, curtail environmental damage and tackle unethical practices in the supply chain. The fast fashion industry has been linked to unethical labour practices and modern slavery, tarnishing the appeal of the garments people wear. We urgently need a more sustainable fashion industry. Increasing domestic production is an important aspect of that, as the hon. Member for Leicester South (Shockat Adam) so passionately set out when talking about his own constituency.

Onshoring is the process of bringing fashion and textile manufacturing back to the UK from overseas. It aims to shorten supply chains and rebuild domestic production capacity that has been lost through decades of offshoring. There are many benefits to onshoring production: it could create local jobs and support British manufacturers and suppliers. More domestic production would also strengthen the UK’s supply chain, reducing reliance on distant producers and the risk of global disruption. There are also benefits to brands seeking agile, flexible production—especially smaller and emerging labels that value local partners—not to mention the reduction of carbon emissions by minimising long-distance shipping. It also fits with growing consumer demand for climate-friendly products, while allowing better quality control and adherence to environmental and labour standards.

Currently, less than 3% of the clothing worn in the UK is made domestically, which shows the scale of the decline. However, the UK fashion and textiles sector retains a base of skilled mills, heritage factories and emerging micro-factories that could support scaled-up onshoring. As such, it has significant potential for domestic growth. UK labour, energy and running costs are, however, significantly higher than in many overseas locations, which makes price competition difficult, and small businesses may struggle with the high initial investment required to rebuild facilities.

Many of the challenges of growing the sector are compounded by a shortage of skilled workers such as sewing machinists. There is a risk of losing these kinds of specialist crafts if they are not actively rebuilt and supported. More broadly, access to training, and hiring and retaining a skilled workforce are issues that affect businesses of all kinds across the country. The Liberal Democrats welcomed the industrial strategy at the beginning of the Parliament, and the commitment to an increase in skills and training.

We would introduce a general duty of care for the environment and human rights in business operations and supply chains. We would introduce legislation obliging retailers to guarantee full traceability in their supply chains, ensuring ethically sourced materials, decent livelihoods and safe working conditions, as well as the introduction of joint liability for sub-contractors in the fashion and fabric industry.

The UK imports around £20 million-worth of clothing from countries around the world every year, and around 25% of that is estimated to come from China. The Liberal Democrats believe that the Chinese Government’s actions in Xinjiang constitute a genocide. The National Crime Agency decided not to launch an investigation into the importation of cotton products manufactured by forced labour in the Xinjiang province of China. The Court of Appeal found that to be unlawful, a decision that the Liberal Democrats welcome. All human beings should be treated with decency and have their human rights respected. With 19 billion units of clothing produced in China yearly, it is not unbelievable that much of that is produced by detainees in Xinjiang.

[Shockat Adam]

Does the hon. Lady agree that any company found to be utilising cotton produced through slave labour should not be allowed to list themselves on the stock market in this country?

[Sarah Olney]

The hon. Gentleman is absolutely right. We need to take much firmer action to ensure that no products traded in the supply chain in this country—or, as he says, stocks listed on the stock market—are produced through any kind of forced labour. The use of forced labour is an affront to human rights; but also, and more pragmatically, it does not create a level playing field for producers who are treating their workers fairly and using ethical processes in their production.

The Global Legal Action Network, which brought the case forward, says that there is abundant evidence that UK companies import cotton made with forced labour from China, and that 85% of Chinese cotton is grown in the Xinjiang region. Slavery is not an issue of the past. Today, almost 50 million people are trapped in slavery worldwide. We call on the Government to reverse the Conservatives’ roll-backs of modern slavery protections, and introduce legislation obliging retailers to guarantee full traceability in their supply chains, ensuring ethically sourced materials, decent livelihoods and safe working conditions. We want to champion human rights and support survivors.

The Liberal Democrats are calling for the Government to issue a comprehensive China strategy that places human rights and effective, rules-based multilateralism at its centre. My colleagues and I will continue to stand up for people’s human rights in the UK and across the globe, including in China, where much of the UK’s fashion comes from. But in order to encourage onshoring, the UK Government must do more to help UK business. They must champion start-ups and the UK’s entrepreneurs, do more to help small and medium-sized enterprises with costs for things such as energy and people, and upskill our workforce to be able to do the jobs created.