Back to today’s briefing

Story perspectives

Chancellor's Cap on Cycle Scheme Sparks Outcry from Campaigners

11/25/2025

43 3

Summary

Story summary

Chancellor Rachel Reeves plans to cap the Cycle to Work scheme, which allows tax-free bike purchases.
Treasury concerns that high earners exploit the scheme prompted the proposed cap.
Campaigners warn the cap could reduce cycling uptake by limiting bike spending.
The Cycle to Work Alliance notes that only 2.5% of purchases exceed £5,000, and most users are basic rate taxpayers.

1 of 1

Story summary

Chancellor Rachel Reeves plans to cap the Cycle to Work scheme, which allows tax-free bike purchases.
Treasury concerns that high earners exploit the scheme prompted the proposed cap.
Campaigners warn the cap could reduce cycling uptake by limiting bike spending.
The Cycle to Work Alliance notes that only 2.5% of purchases exceed £5,000, and most users are basic rate taxpayers.