Rachel Reeves to cut tax benefits for workers using salary sacrifice schemes to buy bikes

Chancellor expected to introduce new limit on how much can be spent on a bicycle through cycle to work scheme

Rachel Reeves has drawn up a plan to cut tax benefits for workers using salary sacrifice schemes to buy expensive manual and electric bicycles, according to a report.

The chancellor is expected to introduce a new limit on how much people can spend on a bicycle through the cycle to work scheme in this month’s budget, the Financial Times said, citing people familiar with budget preparations, amid concerns that subsidising cycle purchases is not the best use of taxpayers’ money.