Both factors above and the war in Ukraine have caused significant financial disruption for many UK FTT businesses. The increase in costs of shipment, import and export duty tariffs, energy and raw materials have made it increasingly difficult for businesses to operate, the report noted.

Many companies in the sector have made redundancies, closed factories, lost business to EU markets and suffered significant financial losses, it noted.

But several businesses diversified into new market areas and brought in positive changes.

This report has been published through joint research collaboration between the Business of Fashion, Textiles and Technology (BFTT) at the University of the Arts London, the Future Fashion Factory (FFF) in the School of Design, University of Leeds, and the Leeds University Business School (LUBS).

The report recommended reducing cost and complexity of trade after Brexit, increasing access to global markets and improving competitiveness, particularly for start-ups and small and medium enterprises, through tax breaks, transparency and clear guidelines.

It urged the sector to grow its capacity and competency, reduce its carbon footprint and create employment opportunities, through business development support, government subsidies, grants and incentives, training and visa programmes for skilled workers.

It also suggested welcoming digital innovation in the FTT sector and raising capacity, efficiency and sustainability.

Fibre2Fashion News Desk (DS)