Fine people in right garments (7)
I believe the answer is:
raiment
'garments' is the definition.
(I've seen this in another clue)
'fine people in right' is the wordplay.
'fine' becomes 'ai' (resembles A1, informal term for top quality).
'people' becomes 'men' (men are people).
'in' means one lot of letters goes inside another.
'right' becomes 'rt' (abbreviation as in Rt Hon- the Right Honourable).
'ai'+'men'='aimen'
'aimen' put into 'rt' is 'RAIMENT'.
(Other definitions for raiment that I've seen before include "Old word for fine clothing" , "Am inert (anag) - clothing" , "these garments are old-fashioned" , "dress?" , "Minaret (anag) - clothing" .)