UK is the European leader in clothes purchases per person per annum. The fashion industry was worth £32 billion to the UK economy in 2017, this being an increase of 5.4% from the antecedent year, showcasing a growth rate 1.6% which is higher than the rest of the economy. According to the Ellen MacArthur Foundation, more than $500 billion of value is lost every year due to clothing under-utilization and the lack of recycling. Nevertheless, the United Nations state that by 2050 the equivalent of almost three planets could be required to provide the natural resources needed to sustain current lifestyles given the growth in global population.

The current "fast-fashion" business model is encouraging the over-consumption of goods, generating excessive waste by demanding a high throughput of garments and being based on a linear economy. Short lead times require materials to be made out of single fibre materials which cannot be recycled.

A report published by Ellen Macarthur Foundation in 2017 highlights how the textiles system operates in a linear way with large amounts of non-renewable resources extracted to produce clothes "that are often used for only a short time, after which the materials are mostly sent to landfill or incinerated". The report states a $500 billion value loss every year due to clothing underutilization and the lack of recycling. In the UK alone, WRAP estimates that £140 million worth of clothing goes to landfill every year.

The environmental impact of the linear economic model is highlighted below:

The production of fibers by polymer extrusion or agriculture makes the largest contribution to the carbon footprint of clothing.

The greatest quantity of water is used during the growing and production of fibers.

The choice of synthetic fibre and design of garments can result in significant differences in the emission of plastic microfibers to the environment.

The best opportunity within the clothing lifecycle to increase longevity is at the design stage, as changes to design practices can have a significant impact on how long items remain wearable.

WRAP estimates an increase of 10% in second-hand sales could deliver environmental benefits, cutting carbon emissions per tone of clothing by 3% and water use by 4% water if it extends garment life by 50%.

Fashion industry must be reinvented due to the scientific warnings given through climate change and biodiversity loss. Fashion must save resources and energy, minimize plastic pollution, reduce waste and thrive to use a more circular business model. New economic models that rely on sharing or renting rather than ownership are emerging. From clothing libraries to baby clothes subscription services, upcycling and repair cafes and peer-to-peer vintage sales on sites like Depop and peer-to-peer clothes sharing on apps like My Wardrobe HQ, there are many new circular business models. Retailers could look to implement these, boosting the second hand market and helping increase the opportunities for extending the useful life of clothing. Actions could include hiring or renting clothing to customers so they can be used by multiple people or developing "subscription" models, which enable customers to swap clothes.

Many evidences showcase that a new "sharing economy" business model for the fashion industry which involves hiring, swapping or subscribing to clothes services could be part of the solution. The loaning and sharing economic models could replicate the purchase models without the environmental costs.

Clothing rental services that offer one time or subscription-based rentals are usually internet based, offer womenswear, and focus on renting high-end pieces for a fraction of the cost. being capable of offering the customers novelty without the need for purchase.

We need new economic models for fashion which are based on reducing the material consumption associated with growth. The Government should explore how it can support the sharing economy. The Chancellor should use the tax system to shift the balance of incentives in favor of reuse, repair and recycling to support responsible companies. The Government should follow Sweden’s lead and reduce VAT on repair services. The Resources and Waste strategy should incorporate eco-design principles and offer incentives for design for recycling, design for disassembly and design for durability. It should also set up a new investment fund to stimulate markets for recycled fibers.