Peter Reed, the 156-year-old company that makes the Queen’s bedsheets, is bringing back cotton weaving to the UK from Italy to create “100pc made in England” bedding.

The Lancashire-based business, which has a royal warrant, makes 200 and 1,000 thread count luxury bed linens that are also sold in Harrods, Peter Jones and shipped to 37 countries including the US and Middle East.

While the product is hand-finished and embroidered in England, the cotton is currently woven in Italy as most British looms were shut down decades ago as cotton weavers couldn’t compete on quality or price with their overseas rivals.

However, this month customers will be able to order high-end “made in England” bed sheets. Peter Reed has invested in onshoring luxury linens manufacturing with English Fine Cottons, which has invested £5.8m in restoring a mill in Dukinfield, Manchester, that was built in 1853 and ended production a century later.