A proposed national textile recycling hub could transform the UK's costly waste crisis into a major economic opportunity, according to a new report. The study reveals that UK’s textile waste problem—which generates over 1 million tonnes annually at a cost of £200 million to the economy—could be turned into substantial benefits including millions in savings and hundreds of jobs.
- The UK's textile waste issue is significant, with over 1 million tonnes of used textiles generated each year, of which approximately one-third is non-rewearable and goes to incineration, landfill, or is exported.
- Disposing of this waste costs the UK economy an estimated £200 million annually, according to the new economic analysis.
- Oxford Economics was commissioned by the Circular Fashion Innovation Network (CFIN) to assess the economic impact of a proposed national textile recycling hub including three sorting facilities and an upstream chemical recycling plant.
ECONOMIC IMPACT—DEVELOPMENT PHASE: The development phase of the national textile recycling hub is projected to span three years and represents an investment of £58 million in the UK economy with substantial employment creation across multiple sectors.
- The development phase is projected to create an estimated 220 direct job years on plant sites, with a total of 620 job years of employment supported when indirect and induced channels were included.
- The investment is expected to generate a total Gross Value Added (GVA) contribution to GDP of £46 million during the three-year development, with £20 million directly generated by the proposed sites.
- The manufacturing sector is anticipated to benefit most significantly, supporting 240 job years and £22 million in GVA contributions during the construction phase.
- The development phase is estimated to generate £4 million in benefits to the public purse through income tax, national insurance, corporation tax, and consumption taxes.
- The programme would establish the foundation for long-term textile recycling operations while reducing dependence on costly waste disposal methods across the country.
ECONOMIC IMPACT—OPERATIONAL PHASE: Once fully operational by 2031, the proposed facilities are envisaged to transform textile waste processing while delivering substantial ongoing economic benefits and employment opportunities.
- The three sorting sites are projected to pre-process nearly 150,000 tonnes of textile waste annually, with 50,000 tonnes recycled for new clothing fibres via chemical recycling.
- The facilities are estimated to directly support 340 jobs with an average wage of £35,300, providing well-paid employment in the emerging green economy sector.
- An employment multiplier of 2.1 suggests a total of 720 jobs will be supported across the UK economy through direct, indirect, and induced channels.
- Direct activities of the plants are estimated to generate £26 million of GVA contributions to national GDP in 2031, with an additional £27 million generated through indirect spending.
- The recycling plants' operations are expected to support a collective fiscal benefit of £9.6 million to the UK government treasury annually once fully established.
REGIONAL ECONOMIC IMPACTS (OPERATIONAL PHASE): Regional distribution analysis revealed significant economic benefits concentrated across three key areas, with the East Midlands positioned to receive the largest share of economic activity.
- East Midlands: The region is expected to receive the largest share of economic impact, with the ATSP (automatic textile sorting and pre-processing facilities) and chemical plant directly supporting 140 jobs by 2030.
- The East Midlands plants are estimated to support 440 jobs throughout the region, with direct economic activity generating £17 million in GVA contributions annually.
- North West: An ATSP facility could be operational by 2027 and reach full capacity by 2030, directly supporting 100 jobs with an average wage of £35,326.
- The North West recycling plants are estimated to support a total of 170 jobs throughout the region, generating £4.8 million in direct GVA contributions expanding to £10 million total impact.
- South West: The region is proposed to host one ATSP facility, operational by 2027 and reaching full capacity in 2031, directly supporting 100 regional jobs.
INDUSTRY INITIATIVE BEHIND THE VISION: The CFIN has emerged as the driving force behind this transformation, representing a collaborative effort between major industry bodies and government research organisations.
- The CFIN is an industry-led initiative by the British Fashion Council (BFC) and the UK Fashion and Textile Association (UKFT) in partnership with UK Research and Innovation.
