Last Thursday, the Financial Times broke the story of the Government’s potential cap on Cycle to Work purchases, quoting a Government source as stating that “taxpayers shouldn’t be footing the bill for luxury leisure”. Since then, there’s been widespread criticism of the rumoured change.
Labour MP Fabian Hamilton, chair of the all-party parliamentary group on cycling and walking, was quoted in a follow-up article in the Financial Times on Saturday as saying that “a crude cap would land on the wrong users”.
Saturday’s FT also quoted Will Butler-Adams, chief executive of Brompton, who stated that putting a barrier between working people and the innumerable benefits of cycling felt short-sighted.
Additionally, the FT talked to specialist retailers of electric bikes, with Dan Parsons of Fully Charged pointing out that none of its bikes retail for under £2,000 and that its average transaction price for an electric cargo bike, allowing a family to replace a car to transport children, is £4,000.
Parsons noted that take-up of the Cycle to Work scheme isn't confined to London and the home counties, and that it's a popular choice to fund bike purchases at Fully Charged’s other stores, including its latest opening in Cornwall.
The bike industry wades in
There’s also been comment from cycling bodies, including Cycling UK and the Cycle to Work Alliance.
Cycling UK’s director of external affairs, Sarah McMonagle, points to the return on investment from Cycle to Work: “While capping the scheme may sound like a sensible way for Ministers to save money, in reality, it will cost the government a lot more. For every £1 spent on the Cycle to Work scheme, we see over £4 in returns: boosting productivity, reducing sick days, and saving households money."
“With the popularity of ebikes and cargo bikes soaring, supporting these trends is not just good for individuals, but for the economy as a whole. Any proposal to cap the scheme must consider people who require higher-cost cycles, such as cargo bikes or assisted cycles for disabled people,” she continues.
Cycle to Work Alliance chair, Steve Edgell, points to the increased range of bikes now available through Cycle to Work, following the abolition of the previous cap.
“In 2019 a spending cap of £1,000 was abolished, as it was preventing people from being able to access the equipment they needed for everyday commutes. By effectively excluding e-bikes and adapted cycles from the scheme, the cap discriminated against older people and those with disabilities,” he states.
Commenting on LinkedIn, former Cyclingnews editor, Peter Stuart, points to the zero VAT rating of aircraft seats: “Fuel duty exemptions for aviation fuel mean private jet passengers pay the lowest tax per tonne of CO₂ of anyone in the sky. That, to me, sounds a lot like ‘taxpayers footing the bill for luxury leisure’.”
