Stat: British luxury experiences post-Brexit slowdown

UK – British luxury exports to the EU are on average 43% lower than they would have been without Brexit, according to new data from Walpole.

The report, conducted by Frontier Economics, reveals the sharpest declines in fashion and accessories (-64%), and home and interiors (-50%).

Launched ahead of the UK-EU summit in London, the analysis is the first to measure Brexit’s full impact on the UK’s luxury sector – a £14.6bn contributor to the economy, supporting over 450,000 jobs.

Trade delays, inconsistent EU rules, VAT refund challenges and difficulties in sending product samples are all cited as barriers. In response, many brands have opened fulfilment centres in the EU, diverting investment away from the UK.

With the British luxury sector projected to reach £125bn by 2028, ‘we cannot afford to have one arm tied behind our back,’ says Helen Brocklebank, CEO of Walpole. ‘Strong links with Europe remain essential.’

Walpole calls for policy reforms including improved VAT cooperation, simplified digital labelling and a renewed Youth Mobility Scheme with the EU.

Explore our Walpole British Luxury Summit 2025 event recap to see more industry insights.