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Published
Aug 29, 2018
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Luxury and fashion most "at risk" from Brexit - report

Published
Aug 29, 2018

A potential no-deal Brexit would hurt a number of UK industries more than others with both luxury goods and the fashion sector generally among those set to suffer the most, new analysis shows.


A no-deal Brexit would hit UK luxury and fashion hardest, new analysis shows



Plimsoll Publishing said that both luxury goods producers and clothing firms are highly at risk in the event of no deal being struck with the EU before Britain leaves the trading bloc. Both of those sectors are in the top 10 list of the industries likely to suffer most.

The findings were produced using latest data from Companies House, combined with the researcher’s Plimsoll Model analytical tool. It said that with 43% of UK exports in goods and services going to countries within the EU, the absence of a deal would be disastrous for some sectors.

In fact, the Luxury Goods sector comes at the very top of the red alert list with 39% of companies in this sector flagged as ‘in danger’ and 33% already operating at a loss. 

In a varied list that also includes New Media companies, Oil & Gas, Subsea Engineering, Biotechnology and Marine Contractors, Clothing Designers show up too, with 32% of them in danger and 31% already loss-making.

Looking at both luxury and clothing, 55% of the former have an export business, which means higher tariffs and more red tape could be a massive problem. And for clothing designers, the number exporting is an even higher 63%.

Christopher Evans, Senior Analyst at Plimsoll said: “The chances of the UK leaving the EU without a trade deal appear to have increased significantly of late. While some openly welcome such an outcome, for many industries it will make a tough job even harder.
 
“Many UK sectors rely on the frictionless trade and common regulations that being in the EU affords them, however, this could all change on Friday 29th March 2019 and a number of markets could experience severe disruption”.

Only this week, UK Prime Minister Theresa May had said that a no-deal Brexit “wouldn’t be the end of the world”.

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