UK luxury lobby blames Brexit for growth lag in EU-bound exports
UK exports of high-end items to the European Union have lagged behind the broader growth of the country's luxury sector, a trend that industry lobby Walpole attributes to Brexit.
The value of shipments of British designer goods to the EU rose to £18 billion ($23.9 billion) in 2022, from £16 billion in 2017, a pace that's far below the industry's 11% in compound annual growth during the same period, according to research conducted by Frontier Economics for the industry lobby.
Businesses have encountered delays driven by new certification requirements and custom complexities, said Walpole, which represents brands such as Burberry Group Plc and Fortnum & Mason Plc, in a Monday statement. The varying application of rules has also created unpredictable timescales and costs, it said.
As a consequence, the EU accounted for less than a third of UK luxury exports in 2022, a drop from 42% five years before, Walpole said. The bloc remained the single biggest destination for British high-end shipments, it said.
'We cannot afford to have one arm tied behind our back,' Walpole's chief executive officer Helen Brocklebank said.
British brands have been outspoken about the impact of the country's exit from the EU on the sector's growth, which has been hampered by export lags and added administrative work. The removal of tax-free shopping for foreign visitors has also dealt a blow, with tourists now incentivised to claim rebates instead in other parts of the EU, where the tax break still applies.
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