Repair biz petition calls on Gov to follow EU on cycling goods VAT trim

A new petition from cycling workshop chain fettle is calling for the reduction or removal of VAT on the supply, rental and repair of bicycles, inc. e-bikes.

The petition, created by fettle social media lead Hayley Whitehorn, calls upon UK Government to follow the EU lead in delivering a “modernised” VAT directive, which outlines, “…anything that fights climate change, serves health protection or promotes the digital transformation should be available with a lower VAT rate. Bicycles are among them.”

“Currently, the standard VAT rate of at least 15 per cent applies in most states of the European Union. This could change to at least five per cent next year.”

As such, Whitehorn’s petition reads: “Follow suit with the EU and reduce (or even remove) VAT on the supply, rental and repair of bicycles, including e-Bikes. This could encourage more people to cycle and thus reduce carbon emissions, which in turn would improve life in our country and on our planet.”

In the UK, the same changes to VAT have been lobbied for within the industry and, according to CI.N’s current annual market research, 55% of bicycle retailers believe such a legislative change could provide the much needed boost to growing cycling numbers needed to reshape the transport picture.

There is a widely held view among some industry leaders that electric bikes, in particular, could benefit from further stimulation, as cost of entry is perceived a larger barrier to purchase. The use case for assisted bikes is arguably greater and more able to shift people who may not necessarily desire to cycle on their own steam from cars.

One Conservative MP has previously told CI.N that at a time of high demand bike shops may not necessarily want further subsidies for cycling.

Politicians have also argued previously that the lifting of the Cycle to Work ceiling beyond £1,000 opens up such savings, but these schemes remain inaccessible to those out of work, or the self-employed.

For those considering making the shift to cycling as transport, any reduction in a UK 20% VAT rate, as currently applied to bicycles, would further reduce the barrier to entry, and naturally compliment government funding focused upon building of curb protected cycle lanes.

In November last year, fettle held a fundraise in order to quickly grow the tally of its workshop outlets across the UK. The business was formerly known as Handlebars.