Economy

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Cycling and the economy

Cycling contributes more than many people think to local and national economies...
Cyclist in shopping area
Headline Messages: 
  • Our excessive dependence on motorised road transport imposes significant economic costs on society. These include congestion, road casualties, physical inactivity and air pollution (and the associated damage to buildings, ecosystems, agriculture and health), as well as the geopolitical costs of maintaining fossil fuel supplies in an increasingly unstable global environment.
  • Cycling could substantially reduce these risks, while strengthening local economies in both urban and rural areas, supporting local businesses and property values, boosting the economic productivity of a healthy and satisfied workforce, and enabling disadvantaged groups to gain skills and access employment opportunities.
  • Local and national government, businesses and economic regeneration partnerships should therefore invest more heavily in promoting cycling; and the tax system should offer greater support.
CTC View (formal statement of CTC's policy): 
  • The economic benefits of investing in small scale projects that typically benefit cycling are often underestimated. On the other hand, car-dependence is a significant cost for society and large scale transport projects (e.g. roads) are not the value-for-money they are often thought to be.
  • Cycling makes a positive contribution to the national economy and it is a cost-effective investment. It can help:
    • Reduce congestion;
    • Improve public health and save NHS money;
    • Create jobs;
    • Save employers money and improve productivity;
    • Inject money directly into the economy via the cycle trade;
    • Boost the vitality of town centres;
    • Deliver goods efficiently;
    • Lift house prices.
  • The Treasury should incentivise cycling through:
    • Adhering to the principle that 'the polluter pays' as the basis of taxation of transport users;
    • Maintaining a tax-free mileage rate that makes cycling on business financially worthwhile;
    • Supporting cycle commuting schemes that save businesses and employees tax (e.g. the ‘salary sacrifice’ Cycle to Work scheme);
    • Reducing VAT on cycle repairs;
    • Working with the European Union on changes to the VAT Directive that would encourage cycling (e.g. zero-rating cycles);
    • Maintaining its policy of not taxing cycles for the use of the roads.
  • Both national and local authorities should dedicate sufficient resources to smarter choices, recognising that they rely on revenue rather than capital funding.
  • Economics-focused bodies such as Local Enterprise Partnerships (LEPs), regeneration agencies, developers and retailers should recognise the value of cycling and take action to promote and encourage it.
Download full campaigns briefing: 
Publication Date: 
March 2014
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  • Patron: Her Majesty The Queen
  • President: Jon Snow
  • Chief Executive: Gordon Seabright
  • Cyclists' Touring Club (CTC): A company limited by guarantee, registered in England no.25185. Registered as a charity in England and Wales No 1147607 and in Scotland No SC042541
  • CTC Charitable Trust: A company limited by guarantee, registered in England no.5125969. Registered as a charity in England and Wales No 1104324 and Scotland No SC038626

 

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