Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the Cycle to Work tax exemption initiative on the economy.

The Cycle to Work Scheme is made available as a Benefit in Kind and uses the tax exemption for the employer-provision of cycles and associated safety equipment. The scheme was introduced in 1999 to to encourage employees to commute by bicycle by offering a tax-efficient route to access relevant equipment.

HM Revenue & Customs (HMRC) commissioned independent research to evaluate the effectiveness of the Cycle to Work Scheme, alongside carrying out economic research on the bicycle market’s implications for the scheme’s success. The evaluation and the economic research were published in April 2025.