A leading Savile Row tailor, Richard James, sold "Made in England" suits produced by cheap labour in Africa, The Independent can disclose today.(Seleted fromIndependent)

For two years workers on the island of Mauritius – paid a fraction of the wage of a British craftsman – cut the fabric and stitched the suits which sold for between £500 and £2,000.

When the suits arrived in the UK, workers in Norwich "finished" the garments by sewing on sleeves and buttons and pressing them. The suits then carried labels stating "Made in England" even though, according to Mr James's company, no more than 25 per cent of the work was done in the UK.

Mr James denied he had misled customers. However, earlier this month, after a complaint from a rival tailor, Trading Standards officers ruled foreign-made suits should no longer be marketed as English. As a result, Mr James, whose garments are sold at Harvey Nichols and Harrods in Britain and at retailers from Beverly Hills to Tokyo, has agreed to remove the labels.

Country of origin will be omitted from new labels. Sean Dixon, the managing director of Mr James's company, insists he has not misled customers or done anything "illegal or wrong".

The Savile Row tailors Anderson & Shepherd and Norton & Sons said they were pleased customers were becoming aware of the provenance of clothing sold in the vicinity of the famous London street. Traditional firms have been fighting to preserve the reputation of Savile Row tailoring since the emergence of rival shops in the area which offer clothing for a fraction of the typical £3,000 price for a hand-made suit.

Mr James has been a star of the Mayfair tailoring scene since opening a shop on Savile Row in 1992. He is discreet about his client list but it includes Sir Elton John and Hugh Dancy.

Mr James was named the Bespoke Tailor of the Year by the British Fashion Council this week. However, as he attended a glittering ceremony he was about to be engulfed in a row about his ready-wear and made-to-measure suits – which are made by several companies.

One is Wensum Tailoring in Norwich, which moved most of its production to Mauritius in late 2005, with the loss of 135 jobs in the UK. Clients of Wensum choose which labels to use. A minority, including Richard James and John Lewis, specified the African-made suits carry a "Made in England" label.

Simon Glendenning, Wensum's managing director, said advice from a London law firm indicated the labels were legal because a "substantial" part of production had been carried out in Britain. However, after the introduction of new anti-rogue trader legislation in May, Norfolk County Council advised Wensum on 14 November that the position could not be sustained.

John Lewis withdrew its own-label suits made by Wensum and Mr James agreed to remove the labels. "We have done nothing wrong. We have abided by all the rules," Mr Dixon, of Richard James, said. "We were offering customers value for money. I don't think we were misleading."

Tony Lutwyche, a Soho tailor whose clients include Gordon Ramsay and whose clothes are wholly made in England, made the complaint to Trading Standards. Mr Lutwyche said: "Made in England means a lot around the world. It's a badge of quality."