We recognise the importance of continued innovation in the textiles sector and, as we develop the Circular Economy Strategy for England, we will consider the evidence for action right across the economy and evaluate what interventions may be needed. Over the coming months, the Circular Economy Taskforce is identifying specific subject areas, such as extended producer responsibility, requiring deeper exploration to test with industry leaders, trade associations, and other key stakeholders in the sector. This will ensure that the Strategy reflects the needs and insights of all involved before publication in autumn this year.

My Lords, the Government have not made an assessment of sustainable levels of clothing sales, but reducing textiles waste will be critical to hitting our net-zero goals. Our Maximising Resources, Minimising Waste paper, published in July, outlines our initial policy proposals for reducing textiles waste. We propose to ban textiles waste from landfill, require clothing retailers to provide in-store take-back of unwanted textiles and ask businesses to separate textiles waste for reuse and recycling.

We have very demanding targets in our Environment Act commitments, which include reduction by 50% to 2019 levels. The noble Baroness is absolutely right about the impact of fashion and textiles in terms of both carbon and the use of embedded water, and we will be publishing details next year of how we are going to progress the producer responsibility for textiles. Our priority is packaging.

We are deeply concerned by the reports of labour exploitation in the Leicester textiles industry. In light of these serious allegations, a multi-agency Taskforce, led by the Gangmasters and Labour Abuse Authority (GLAA) has been set up in Leicester to enable the relevant enforcement bodies to work together at pace to take appropriate action against unscrupulous employers who exploit workers. The taskforce includes HMRC’s National Minimum Wage (NMW) team.

Since 2012/13, HMRC’s NMW team has investigated more than 150 garment trade employers, including multiple employers operating in Leicester. To date, HMRC has recovered over £215,000 in wage arrears for 411 textile workers and issued over £325,000 in corresponding penalties to employers. Since 2015, HMRC have facilitated 19 director disqualifications relating to the textile sector. HMRC are also exploring outreach activities with local groups in Leicester, such as holding community events, designed to promote HMRC NMW rights for workers, and support employers and agency partners.

The Government is committed to improving enforcement of employment rights. We have announced the intention to introduce a Single Enforcement Body, which will provide a clearer route for workers to raise a complaint and get support, enabling more coordinated enforcement action and the use of pooled intelligence to better target proactive enforcement. We are also extending state enforcement to cover holiday pay for vulnerable workers and umbrella companies operating in the agency worker market.