Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of removing VAT from children's bikes on levels of take up of cycling among children and young people.

VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. Taxation is a vital source of revenue that helps to fund vital public services.

Evidence suggests that businesses only partially pass on any savings from lower VAT rates. In some cases, reliefs do not represent good value for money, as there is no guarantee that savings will be passed on to consumers.

The Government has no plans to remove VAT on children’s bikes.