Latest news with #FrontierEconomics
Yahoo
20-05-2025
- Business
- Yahoo
New report shows UK luxury exports to EU down 43% post-Brexit
Walpole, the body representing British luxury industry, has urged governmental intervention to address the obstacles hindering trade with the EU for the luxury sector following Brexit. The sector, valued at £81bn ($108bn), is facing challenges post-Brexit, as detailed in Walpole's latest Trading with Europe report 2025. The study, conducted by Frontier Economics, revealed that following the UK's departure from the EU, luxury exports have suffered with an average drop of 43%. This "Brexit effect" is substantial, given the industry's role in sustaining over 450,000 jobs and contributing £14.6bn to the Treasury. Fashion and accessories exports have taken the hardest hit, plummeting 64%, while interior design, home goods and craftsmanship exports have fallen by 50%. The complexities of UK-EU trade relations have been exacerbated by increased tariffs from the US and diminished demand from Chinese consumers. The study illustrates a shift in export dynamics, with EU exports dropping from 42% of total luxury exports in 2017 to 32% in 2022. Despite this decline, the EU market remains paramount for UK luxury goods, outpacing both the US and Asia, which each account for 22% of exports and the Gulf region at 14%. Post-Brexit trade barriers have introduced increased paperwork, higher costs and delays in exports due to new certification demands and customs intricacies. It claims that these challenges have disproportionately affected brands that maintain high customer service standards. Inconsistent rule enforcement across EU member states and ports further complicates matters by introducing unpredictability into costs and timelines. Complications with VAT refunds and reclamation processes have led some businesses to incur losses on returned items. Marketing efforts have also been stifled by difficulties in distributing product samples to journalists and influencers. Changing sustainability standards and labelling requirements have also injected operational uncertainty into business planning. In response to these challenges, some British luxury brands have set up distribution centres and commercial operations within the EU to redirect investment away from potential UK growth. Walpole CEO Helen Brocklebank stated: "The British luxury sector has incredible growth potential, with a projection to reach £125bn by 2028. "However, to achieve this ambition, we cannot afford to have one arm tied behind our back. Strong links and favourable trading with Europe remain essential to reaching this forecast, alongside our success in other global markets, and key to supporting craft-led and high value manufacturing in the UK." To address issues within the luxury industry, Walpole has made a series of recommendations to the UK government, including joining the Pan-Euro-Mediterranean Convention to support key exports, implementing a digital labelling system, negotiating better VAT terms with the EU and securing an SPS (Agreement on the Application of Sanitary and Phytosanitary Measures). "New report shows UK luxury exports to EU down 43% post-Brexit" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
19-05-2025
- Business
- Bloomberg
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.
Yahoo
19-05-2025
- Business
- Yahoo
British Luxury Exports 43 Percent Lower Due to Brexit, Says Walpole Report
LONDON — British luxury exports to the E.U. were on average 43 percent lower than they would have been without Brexit, said Walpole Monday in a fresh analysis on the impact of Brexit on the U.K. luxury sector ahead of a UK-EU summit in London. The effect has been particularly pronounced in fashion and accessories, down 64 percent, and interior design, home and craftsmanship, down 50 percent, said the report conducted by Frontier Economics on behalf of the not-for-profit organization. More from WWD Michelangelo Foundation Focusing More on U.S. to Champion Artisans Luxury Grapples With Disillusionment and Fragile Recovery in China EXCLUSIVE: The Luxury Consumer Has a New Dealer This is billed as the first comprehensive analysis of Brexit's impact on the luxury sector, which supports over 450,000 jobs and contributes 14.6 billion pounds to the treasury, according to Walpole. The report calls on the British government to address trade barriers with the European Union, such as delays in exports, the varying application of rules between EU member states and between ports of entry, challenges with refunds and VAT reclamation, and sending product samples to journalists and influencers in time. The report said several British luxury brands have established fulfillment centers and commercial entities within the EU to mitigate these issues, and this inherently diverted investment that could otherwise have supported U.K. growth. Helen Brocklebank, chief executive officer of Walpole, said the British luxury sector has growth potential, with a projection to reach 125 billion pounds by 2028. 'To achieve this ambition, we cannot afford to have one arm tied behind our backs. Strong links and favorable trading with Europe remain essential to reaching this forecast, alongside our success in other global markets, and key to supporting craft-led and high-value manufacturing in the U.K.,' Brocklebank said. The report showed that while the proportion of EU exports as a share of overall luxury exports has declined from 42 percent in 2017 to 32 percent in 2022, the EU remains the U.K. luxury sector's largest export market, ahead of the U.S. and Asia, both at 22 percent, and the Gulf region at 14 percent. Among the actions Walpole recommended that the British government consider were joining the Pan-Euro-Mediterranean Convention on Rules of Origin to support automotive and textile exports, introducing a new digital labeling plan to reduce complexity and negotiating improved VAT cooperation with the EU. It also advocated for a U.K.-EU Sanitary and Phytosanitary agreement to bring together freight and courier companies to deliver a consistent approach to trade rules, to launch a consumer confidence campaign in the EU to reassure customers it is easy to buy from the U.K., to launch a Youth Mobility Scheme with the EU, and to undertake a wide-ranging review of U.K. competitiveness. Walpole has more than 250 members spanning the fashion, automotive, hospitality and design industries. Walpole said its members, which include Burberry, Alexander McQueen, Fortnum & Mason, and Rolls-Royce, collectively contribute 81 billion pounds annually to the U.K. economy. The organization also offers a Brands of Tomorrow program that supports start-ups, and has issued the British Luxury Sustainability Manifesto, 'ensuring the U.K. remains a leader in both excellence, and responsible practices.' Best of WWD Pandemic Has Stoked Appetite for French Luxury, Survey Finds U.S. Sets Strategic Vision for China Trade Policy Furmark's Farm-to-Shopfloor Tracing Tags Set for International Debut Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mirror
18-05-2025
- Business
- Daily Mirror
KEVIN MAGUIRE: ‘Brextremists can scream all they like – we're safer close to EU'
BRITISH holidaymakers to Spain, Portugal, France, Greece, Italy and other European Union countries using e-passport gates to dodge Brexit lengthy passport queues is a deal worth having. So too are cheaper food and drink from scrapping border red tape, better electricity links, British firms bidding for £150billion of defence contracts, student exchanges and, possibly down the line, visas for touring rock bands and other artists plus recognition of professional qualifications. The valuable prize could tot up to a valuable £25bn, calculate financial analysts Frontier Economics, while the authoritative National Institute for Economic and Social Research warns drop the ball and falling UK exports would cost us nearly £30bn. Keir Starmer is entitled to feel pleased with himself at the landmark UK-EU summit in London to improve relations between neighbours. The EU and this agreement are more important to our future prosperity than the over-hyped India trade pact or US compromise to ease the pain of loony tune Donald Trump's mutually damaging tariffs. Most Britons accept Brexit was a disaster and wish we were still in the EU which is why politically Starmer has little to fear and much to gain from Kemi Badenoch and Nigel Farage screaming surrender and sell-out. The Conservative and Reform UK leaders are old Generals fighting the last war and confirm they are stuck in the past in a country that wants to move on and build bridges with our closest economic, political and military partners. Trump's unhinged behaviour alone demonstrates why Britain will be more prosperous and safer close to the EU and, I hope, back one day in that family of nations. Brextremist politicians who denounce the deal are entitled to go to the back of the longest queue they can find at passport control instead of going through quicker with the rest of us. TO just be on this year's so-called UK Rich List topped by the £35bn Hinduja family, a tycoon or clan owns 18,000 times the wealth of an average Brit. That's three times a still massive 6,000 times gulf when guesstimates were first published in 1989, according to a Greenwich University study, because inequality soared. We should rename it the Grotesque List when millions rely on foodbank charity to eat, parents are unable to afford new clothes for kids, homelessness is a national scandal and those with a roof over their head live in fear of bailiffs smashing the door. Excuse me if I decline to weep for nine fewer billionaires and a drop of 21 since 2022's peak. I'll cheer when all 156 are off because Britain will be a better, fairer and happier land if we shared obscene wealth for the common good. STARMER and Foreign Secretary David Lammy will be in the firing line if the UK fails to recognise a Palestinian state next month at an international conference convened by France and Saudi Arabia. The ethnic cleansing of Palestinians in Gaza and charges of genocide plus settler and state violence in an occupied West Bank mean further shilly-shallying is complicity when the most Right-wing reactionary regime in Israel's history pursues its own from the river to the sea drive. Palestine is recognised as a sovereign nation by 147 countries, about three-quarters of UN members, including most recently Spain, Norway and Ireland. So why not Britain?
Yahoo
17-05-2025
- Business
- Yahoo
The £25bn-a-year prize at stake in Starmer's Brexit reset talks with EU
A £25bn annual boost to British exports is at stake for Sir Keir Starmer as he tries to secure a Brexit reset deal at a crucial summit on Monday, analysis shared with The Independent reveals. Removing trade barriers on goods, including food and drink and electrical items, could result in a 2.2 per cent uplift in gross domestic product in the long run, boosting the economic growth the prime minister so desperately wants to deliver, financial analysts Frontier Economics found. And a separate assessment by the National Institute for Economic and Social Research (NIESR) warns that a failure to land a deal for easier trading could lead to a 2.7 per cent drop in exports by 2027, costing the UK economy almost £30bn. The impact on the British economy from such a deal is expected to dwarf that of the agreements recently signed with India and the US. Gordon Brown's former economic adviser Lord Jim O'Neill summed up the importance of Sir Keir's summit in London: 'Obviously, the closer and more serious we can get, the better it is for reversing our net trade losses, and importantly, net investment from EU areas. 'Given the shock from Trump [tariffs] to Europe, especially on Germany, on top of the Ukraine shock and China slowdown, I think Germany [will be] more open to pro-UK trade issues than before. 'Also, I suspect the EU is going to give more than lip service to cross-border services sector reform now. Given UK net advantages in service sector exports, this is important to us.' Such reforms could make it easier for the UK to sell services to the bloc by allowing mutual recognition of qualifications so UK professionals can practice in the EU and vice versa without having a retrain. NIESR's interim director Stephen Millard said the value of Monday's deal should not be underestimated. He said: 'In 2024 we exported roughly £6.5 billion to India, roughly £53.5 billion to the United States and roughly £159 billion to the European Union. It is fairly clear from those numbers that a trade deal with the European Union is much more likely to shift the dial than the deals with India and the United States.' His assessment was echoed by Chris Southworth, director general of the UK's largest business organisation, the International Chambers of Commerce (ICC), who noted that the trade deal signed with Donald Trump, that saw tariffs slashed on UK car and steel exports, was a 'damage limitation agreement' and only accounted for 13 per cent of international Gross Domestic Product (GDP). But he fears the deal to be unveiled on Monday 'may not be ambitious enough' especially if it only focuses on goods rather than the future growth areas of digital services. It is a view shared by the Labour chair of the Commons foreign affairs committee Dame Emily Thornberry. In an interview with The Independent, she called on Sir Keir to be more 'courageous', adding: 'We should be going further than the government currently seems to have the ambition for doing.' The deal is expected to include closer defence cooperation, goods and services, and a youth mobility agreement, that would allow 18 to 30 year olds to live and work in the UK and Europe for a time-limited period. Two immediate big wins could be to include the UK in the €150bn EU defence procurement fund, which would allow the government to bid for military equipment contracts and, invite them to join the EU data hub. The latter is being championed by Poland who currently have the presidency of the EU. A special report from earlier this year found that Brexit had cost the UK £30.2bn in settlement costs, stopped 16,400 businesses from exporting to the EU, and could lead to a 15 per cent long-term loss of trade. From the £24.8bn export boost for the UK estimated by Frontier Economics in a report commissioned by pro-EU group Best for Britain, farm food exports alone could see a £3.2bn increase. Agricultural exports have suffered since Brexit, with food and drink exports down by more than a third, according to trade bodies. The EU, meanwhile, would also benefit; with a £22.4bn boost to exports in goods and services from a closer agreement, selling £5bn more in agricultural products. Amar Breckenridge, senior associate at Frontier Economist said that some of the economic damage caused by President Trump's tariffs could be offset by the benefits of a closer EU trading relationship. While tariffs could still cost the UK £4.3bn in GDP under the new US trade deal, Mr Breckenridge's estimated the UK could claw back £8.1bn from closer trading with the EU. The long-awaited youth mobility scheme alone could boost GDP by 0.45 per cent in the next decade, according to a separate study from the Centre for European Reform. But recent reports suggest that the deal might hit speed bumps in a row over high student fees for EU students coming to the UK, in addition to a lack of flexibility over amount of fish EU countries can take from British waters. On youth mobility, John Springford, associate fellow at the Centre for European Reform, noted: 'The youth mobility scheme would raise GDP by bringing more young EU workers into the UK labour force - although the final numbers will depend on how many are allowed to come and how long they can stay for.' Introducing it could amount to 31,000 more young people a year coming to the UK at the highest end, which would mean more people working and contributing to the economy. But EU officials want lower fees for their students, according to reports, which is causing tension ahead of Monday's talks. International students currently pay around £12,000 more in fees on average a year than domestic students. The number of EU students at UK universities has dropped to nearly half since Brexit, with 75,000 EU nationals enrolled in British colleges and universities in the 2023/24 academic year - down from 148,000 in 2019. The Independent estimates that UK universities generate around £1bn a year in extra fees from EU students, which is likely why the government is facing domestic pushback over lowering fees. Lowering fees would have a positive impact because EU students spend around £61,000 here over the course of their studies, research from London School of Economics found, on top of their tuition fees.
