The UK risks falling behind global efforts to clean up the fashion industry unless it overhauls outdated and incomplete regulations, a major new white paper warns.
The report, put together by campaign group Fashion Declares and law firm Bates Wells, calls for three key reforms: closing tax loopholes used by ultra-fast fashion giants, introducing new fees to hold brands responsible for textile waste, and rolling out clear labelling to show the environmental cost of clothing.
Its authors argue the reforms are essential to protect UK retailers from being undercut by overseas rivals, and to shift the industry away from “exploitative, throwaway business models” that rely on cheap imports and polluting supply chains. Without change, they say, the UK will squander a rare opportunity to lead on sustainable fashion in a post-Brexit economy.
The report, titled The Future of Fashion Regulation in the UK, was launched by Fashion Declares and Bates Wells, a law firm that works with businesses across the fashion and textile sector.
Safia Minney, founder of Fashion Declares, said: “The white paper calls for collaboration across the fashion industry to drive discussion on policy recommendations for the UK Government. The three policy recommendations should be enacted together and are long overdue. By closing the de minimis customs threshold, mandating an Extended Producer Responsibility fee system and introducing Digital Product Passports, the UK can create an effective policy and regulatory framework that incentivises responsible business practices, empowers consumers and contributes to a more circular and resilient economy. We need regulation urgently to build a new economy based on working within planetary boundaries and redistributing wealth more fairly.”
While governments across Europe and the US have started tightening rules on fast fashion, the UK has yet to follow suit. Campaigners say that without urgent action, it risks falling further behind — and becoming a soft target for cheap imports and unchecked waste.
Oliver Scutt, a senior associate and sustainable fashion lead at Bates Wells, said the industry itself is calling for better rules. “There’s a glaring hole in UK law,” he said. “What our research has shown is that this sector actually wants good law – the right kind of law – and sees very clearly that ‘business as usual’ tends to prioritise shareholder value at the expense of people and the planet.”
“We’re calling for practical, targeted legislation,” he added. “This isn’t about penalising the industry – it’s about updating the rules so they match the scale of the challenge. Cheap parcels arriving from China, piles of wasted clothes, no oversight – that’s where we are now.”
Tackling the fast fashion loophole
One of the central proposals is a call to end the so-called de minimis tax exemption, which allows retailers to ship low-value items into the UK without paying import duty. That includes giants like Shein, which reportedly avoided £150 million in UK tax in 2023 alone. Domestic brands, by contrast, face full tax obligations.
Campaigners say this has created an uneven playing field and is directly fuelling the rise of disposable fashion. The white paper proposes closing the loophole and replacing it with a “harm-based” import system that reflects a garment’s true environmental and social cost.
Making brands pay for what they produce
The paper also proposes introducing an Extended Producer Responsibility (EPR) scheme for textiles. This would make brands accountable for what happens to their products after they’re sold – including funding systems to collect, reuse, recycle or dispose of garments responsibly.
Fees would vary based on how garments are designed and made. Brands producing durable, repairable clothing would pay less, while those flooding the market with low-quality fast fashion would pay more.
“Producers need to take responsibility for the products they bring into the world,” the report says. “When a customer has finished with an item, it should be returned to the supplier – not sent to landfill.”
Pulling back the curtain on supply chains
The third proposal is the introduction of Digital Product Passports – simple QR codes attached to garments that would allow shoppers to see what they’re made of, where they were produced and under what conditions.
The idea is already being adopted by the EU, with rollout planned for 2027. Supporters say it could eventually evolve into a traffic light–style label, giving consumers instant insight into a product’s ethical and environmental footprint.
‘We’ve come a long way’
Speaking at the launch, Baroness Lola Young – founder of the Ethics and Sustainability in Fashion parliamentary group – reflected on how far the conversation has come since she first raised fashion’s ethical challenges in Westminster.
“About 15 years ago I do remember putting forward this idea, thanks to all my women friends, of having something in Parliament around ethical and sustainable fashion – and being greeted with ‘well what’s that got to do with politics?’” she said. “So in that sense, you can say we’ve come a long way.”
She also stressed the need to recognise how inequality and racial injustice are embedded in global supply chains. “You can’t tell me that some of the practices that are rampant in this industry would be the same if it were white folks we were talking about – because it wouldn’t.”
The white paper will now be shared with stakeholders and MPs, with Fashion Declares hoping to use it as a springboard for broader legislative change.
“Next steps will be to gather feedback, build momentum, and ultimately present the proposals to government,” Minney said.
Read the white paper here: Fashion Declares
