Fashion is a cornerstone of the British economy, with clothing and textiles contributing £62 billion annually. Yet, its rapid growth has often come at the expense of ethical and environmental standards, and the government has cottoned on to some of the industry’s worst offenders. Recent Business and Trade Committee hearings focusing on worker’s rights and supply chain integrity may be signals of intent to introduce stricter oversight on the industry, with Labour politicians having historically theorised about including a potential ‘Fashion Watchdog’. Therefore, industry leaders face the dual challenge of preparing for reform while maintaining competitiveness in a crowded market.
Fashion has faced growing scrutiny recently, largely due to the actions of major online retailer ‘Shein’. The Chinese fast-fashion magnate has become a lightning rod for criticism over its supply chain practices. Allegations of forced labour in China’s Xinjiang region have put the company under intense scrutiny. During a parliamentary hearing, Shein’s legal representative Yinan Zhu avoided answering several basic questions about whether it uses cotton from Xinjiang, which is linked with forced labour involving the Uyghur minority. She also did not share the company’s position on whether it believed forced labour took place in the region. Chairman of the Committee Liam Byrne commented that Zhu’s evasiveness “bordered on contempt” and demonstrated “wilful ignorance”. Her appearance did little to reassure MPs about the legality of Shein’s supply chains, or the integrity of the fast fashion industry in general.
The fashion industry has long used political engage to influence regulation, often favouring self-regulation to avoid stringent oversight. While this approach may protect profits, it has delayed meaningful reforms to address worker exploitation and environmental harm. The UK’s Modern Slavery Act, for instance, requires more effective enforcement with activists urging the previous government to disqualify Shein from an IPO due to their human rights breaches. Current factory audits often prioritise brand reputation over worker welfare, leaving systemic flaws unaddressed.
The government has yet to take a proactive stance on addressing exploitation and sustainability in the fashion industry, but it does have ideas within its ranks. Key proposals floated include the establishment of a Fashion/Garment Trading Adjudicator to enforce ethical practices and prevent abuses in the clothing supply chain. The proposed Fashion Supply Chain (Code and Adjudicator) Bill, introduced in the last Parliament by Labour MP Liz Twist, aims to implement a Code of Practice for fashion retailers. In 2023 the Liberal Democrats released a policy position named ‘Fixing Fast Fashion’ which aims to tackle the over 800,000 tonnes of fabric waste produced by fast fashion in the UK every year led by the principles of Reduce, Reuse and Recycle and putting sustainability at the heart of fashion. Whilst fashion regulation has yet to gain parliamentary traction, there are ideas which could improve the industry's sustainability driven by Labour’s commitment to tackling unethical practices both domestically and internationally.
To prepare for potential reforms, the fashion industry must adopt proactive strategies. First, investing in supply chain transparency is essential. Auditing beyond the first tier of suppliers can uncover hidden exploitation and demonstrate a commitment to ethical practices. Second, brands should engage in constructive dialogue with policymakers. By participating in consultations (and using Shein’s performance as a ‘how not to’ guide), companies can help shape regulations that address worker protections without imposing excessive burdens. For example, advocating for incentives like tax breaks for sustainable practices could align industry goals with government priorities. Third, collaboration within the industry is critical. Developing shared standards for sustainability and labour rights can foster a unified response to regulatory changes. Adopting technologies such as blockchain for material tracing can enhance compliance and consumer trust.
Fast fashion’s rapid growth poses escalating environmental and social challenges. The sectors continued growth will intensify resource consumption and waste. For instance, cotton production depletes water supplies and introduces harmful chemicals into ecosystems, while unsold garments clog landfills. Worker exploitation remains another pressing issue, with modern slavery affecting an estimated 10,000 individuals in UK textile hubs like Leicester. Without systemic reform, these challenges risk eroding consumer trust and brand reputations.
The UK fashion industry faces a turning point. The Shein controversy and Labour’s regulatory ambitions underscore the urgent need for transparency and accountability. By embracing reforms, engaging with policymakers, and adopting sustainable practices, the industry can secure a thriving, ethical future. Whether through engagement or innovation, proactive action today will shape the future of fashion for the better.
by Ben Young