British fashion industry urges government for financial support amid fears of ‘wiping out’ decade of growth

‘The Covid-19 recession could hit the fashion industry twice as hard compared to the UK overall,’ says British Fashion Council

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The British Fashion Council (BFC) has issued a statement urging the government to offer financial support to the fashion industry.

On Thursday, the organisation released data from global forecasters Oxford Economics that reveals the impact that the coronavirus outbreak could have on the industry, stating that it could “wipe out” the “above-average growth achieved by the industry in the past 10 years”.

“In an industry that employs 890,000 people (2019), 240,000 direct job losses are predicted,” the statement adds.

“If you include indirect jobs through the supply chain and consumer spending this rises to 350,000 which equals one per cent of all UK jobs.

“The level of contribution to GDP is forecasted to drop from £35billion (2019) to £26.2billion.”

Elsewhere, the data predicts that revenues will drop from £118billion in 2019 to £88billion in 2020.

“Whilst the BFC welcomes the support measures implemented by the government throughout the Covid-19 pandemic, research found that many fashion businesses have not been able to access the schemes,” the BFC added.

“Therefore, in order to ensure future employment, whilst re-setting the industry with a focus on clean growth and positive change on the planet and its people, the BFC is asking the government to consider the future of the sector through a series of seven measures.

The measures include helping keep retail open, providing funding to small to medium-size enterprises, and access to finance and future-proofing.

The BFC is also asking for the government to support the development of material innovation to create environmentally friendly PPE (personal protective equipment).

Since the start of the pandemic, the BFC has been fundraising for its Foundation Fashion Fund to help creative fashion businesses and individuals to survive the pandemic.

“In May 2020, it gave financial support and mentoring to 37 British designer businesses, with grants taken from the £1,000,000 emergency fund allocated to viable businesses depending on their urgency and capability to come through and thrive post-crisis,” the organisation stated.

“A portion of funds was allocated to students, underpinning the future generation of creative talent. The fund will re-open for further rounds of applications so that more meaningful support can be given, every time the £500,000 milestone is reached.”