British luxury sector’s £81bn contribution calls for legislative support, Walpole Reports
The British luxury sector, a cornerstone of the UK economy, now boasts an annual worth of £81 billion, according to a groundbreaking report from Walpole, the authoritative body for UK luxury.
The “Luxury in the Making” report, in collaboration with Frontier Economics, showcases a remarkable 69% growth over five years, underscoring the sector’s vital role in economic development and job creation.
The luxury domain, supporting over 450,000 jobs nationwide, is pivotal in driving the UK economy, with its total revenue amounting to a significant 3.7% of the GDP. Moreover, its £25.5 billion tax contribution could theoretically underwrite the construction of 51 mid-sized hospitals or the training of nearly 373,134 nurses, illustrating the sector’s substantial impact on public services.
Despite these impressive figures, the sector’s future prosperity hinges on crucial legislative reforms. Walpole calls for updates to intellectual property laws to protect artisanal crafts, particularly outside major urban centres. For example, Staffordshire’s renowned pottery industry could face decline without legal safeguards ensuring the survival of its unique craftsmanship.
Helen Brocklebank, CEO of Walpole, articulates the sector’s importance: “The British luxury sector, now valued at £81bn, is indispensable to the UK economy. Our report not only highlights the significant employment opportunities across the UK but also underscores the need for recognition and support to sustain this high-growth sector.”
By 2028, predictions set the luxury sector’s economic input at £125 billion annually, surpassing industries like life sciences and construction. This optimistic forecast is contingent on the sector’s ability to navigate challenges, including the aftermath of Brexit, the pandemic’s economic repercussions, and the end of VAT-free shopping for tourists, which could potentially steer £1.5 billion annually to EU competitors.
Michael Ward, Walpole’s chairman and managing director of Harrods, reflects on the sector’s resilience: “Despite facing unprecedented challenges, the UK luxury sector has demonstrated remarkable durability and growth. It’s essential now, more than ever, that we align policy to support this dynamic industry’s future.”
Walpole, representing over 250 British luxury brands, is at the forefront of advocating for a conducive business environment, fostering growth, and sustaining the UK’s reputation for exquisite craftsmanship and unparalleled luxury experiences. As the luxury sector stands on the brink of an evolutionary leap, strategic legislative and policy support is paramount to safeguard and propel this jewel of the British economy into its next chapter of growth and innovation.
