Rachel Reeves is preparing to scale back the tax benefits available through the government’s popular cycle to work scheme, amid concern that high earners are exploiting the programme to buy luxury bicycles at the taxpayer’s expense.
According to a report in the Financial Times, the Chancellor is expected to introduce a cap on the value of bicycles that can be purchased using salary sacrifice arrangements. The move is likely to be announced in the forthcoming Budget later this month, as the Treasury looks for ways to tighten spending while still supporting greener travel choices.
A government figure told the newspaper that the scheme must refocus on its original purpose.
“Cycle to work should be about helping ordinary commuters switch to greener travel, not giving tax breaks to high earners buying £4,000 e-bikes for weekend rides in the Surrey Hills. Taxpayers shouldn’t be footing the bill for luxury leisure.”
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