Off your bike | Government plans to curb high-value Cycle To Work scheme purchases

The Government is preparing to scale back the tax perks available to employees buying costly manual and electric bicycles through salary sacrifice schemes, according to reports.

Chancellor Rachel Reeves is expected to set a new upper limit on how much staff can spend via the Cycle to Work programme as part of this month’s Budget, as first reported by the Financial Times.

The move would reverse the 2019 decision to abolish the original £1,000 ceiling. That change opened the door to the purchase of premium bikes, including models costing several thousand pounds. Ministers now believe the current system is offering overly generous support.

One government figure told the FT: “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.” They added: “Taxpayers shouldn’t be footing the bill for luxury leisure.”