UK MPs debate onshoring amid push for local production: What to know

On Thursday, MPs took to Westminster Hall to debate the case for onshoring in the UK fashion and textiles industry, zoning in on how domestic manufacturing could support economic growth, strengthen supply chain resilience and improve labour and environmental standards. Speakers from across parties explored the balance between cost competitiveness and ethical production, weighing which policy changes could encourage brands and manufacturers to increase UK-based production.

Speaking during the debate, minister of trade policy Chris Bryant underlined that the government has already set aside 4.3 billion pounds to support manufacturers over the next five years, up to 2.8 billion pounds of which is for research and development. He also emphasised the government’s ongoing support for London Fashion Week, particularly its NewGen initiative, though noted disappointment at the lack of menswear on the calendar.

MPs went on to discuss various opportunities to both improve and build on the foundations of UK manufacturing, exploring everything from procurement potential to Leicester’s leading influence on the industry. Here are some of the key points of discussion from the debate;

Public procurement: A 200 million pound market opportunity

Public procurement was presented as the most immediate route to increasing UK garment manufacturing. Catherine West MP highlighted that the Procurement Act 2023 “enables public bodies to prioritise ethical sourcing and local manufacturing” and said procurement should focus on “best value for communities” rather than solely cost.

The discussion positioned uniforms and public-sector workwear as a potential growth area for UK manufacturers. Figures cited in the debate included the British Army clothing budget of around 80 million pounds annually and NHS uniform frameworks worth 125 million pounds over five years. West noted that only 6 percent of UK military uniforms were domestically made in 2013.

Shockat Adam MP added that “tens of millions of our public procurement pounds are leaving our shores”. Trade minister Chris Bryant responded that “it would be good if more of our British servicemen and women were dressed in British uniforms” and said he would examine Ministry of Defence sourcing.

Fashion supply chain watchdog

The debate included calls for a new regulator model to oversee relationships between brands and UK manufacturers. Adam proposed a “garment trading adjudicator—a fashion watchdog modelled on the Groceries Code Adjudicator” to address unstable purchasing practices.

He cited research showing that 100 percent of suppliers pay for audits but only 6 percent are guaranteed future orders, and that 67 percent of manufacturers report brands refusing to cover the cost of order changes. He added that order cancellations, shortened lead times and extended payment terms were destabilising for factories.

West also said small enterprises can be “mistreated by their more powerful business customers” and expressed support for the watchdog concept. The proposal aims to create more predictable trading conditions for domestic garment manufacturers and to reduce risk transfer from brands to suppliers.

Responsible business conduct review

Trade minister Chris Bryant confirmed that the government’s responsible business conduct review is “nearing completion”. The review is expected to address supply chain standards and compliance frameworks relevant to fashion and textiles. In the debate, participants touched on concerns surrounding forced labour, sustainability and transparency in supply chains.

Liberal Democrat MP Sarah Olney said there is “abundant evidence that UK companies import cotton made with forced labour from China”, pointing to Xinjiang, and argued for stronger traceability requirements.

Bryant said his aim was not to “load businesses with more regulation” but to ensure regulation is “truly effective”. He also raised the issue of dumping and unfair subsidies, noting he wants to consider whether unfair trade practices make it “impossible for British businesses to compete”.

‘Made in the UK’ trademark reform

Shockat Adam raised concerns about current labelling rules, stating that “‘Made in the UK’ does not mean that something is made in the UK; it can be made somewhere else and packaged here, and still count”. He proposed the creation of a new “Made in the UK” trademark that would apply only to garments genuinely manufactured domestically.

The suggestion is intended to improve clarity for consumers and strengthen the value of domestic production. Adam argued that clearer certification could support regional manufacturing clusters and differentiate UK-made products in the market. While the debate did not set out initial regulatory changes, it did show evidence of political interest in reviewing origin labelling standards and improving confidence in UK manufacturing claims.

Competing with online giants

Several MPs raised concerns about overseas online retailers undercutting UK producers. West referenced budget measures to ensure customs duty applies to parcels of any value, aimed at preventing overseas firms from undercutting “UK bricks-and-mortar businesses”.

Adam also criticised the volume model of low-cost imports and highlighted rising waste from unsold fast fashion. Olney, meanwhile, argued that products made with forced labour create an uneven market, stating that such practices “do not create a level playing field for producers who are treating their workers fairly”.

Trade minister Chris Bryant added that unfair subsidies and dumping practices could make it difficult for British businesses to compete.

The Leicester Model

Leicester, a popular production hub in the UK, was presented as a case study for regional garment manufacturing. Adam said the city still supports approximately 11,000 jobs in the sector and offers “true end-to-end production, from design concept to finished product”. He noted that every component required to make a garment is available locally, enabling speed and flexibility compared with overseas supply chains.

Adam highlighted Leicester Made and the Leicester Textiles Renewal project as initiatives strengthening local supply chains and accelerating sustainable, tech-driven onshore production. He argued that increasing the share of UK-manufactured clothing sold domestically to 10 percent would be “transformational”.