CBI boss supports Cycle to Work scheme

Sir Digby Jones said:

“Cycling to work is not just good for our health, it is good for the economy as it helps to ease the rush hour queues. Traffic congestion costs businesses £20 billion a year in lost time and is a drain on our efficiency. So, healthy and green, getting to work by bike is worthy of the support of every business in the land.”

The CBI boss is supporting a major campaign urging employers to increase productivity and reduce absenteeism by using tax breaks to encourage more people to cycle to work. The campaign is being waged by Cycling England, to coincide with this year’ Bike Week.

All businesses can sign up to the Cycle to Work scheme, which, through tax breaks, can give employees the opportunity to obtain bikes and cycle commuting equipment at prices lower by up to 48 per cent.

Many scheme participants decide buy a bike at twice the price they would have otherwise spent.

By encouraging staff to cycle to work, employers are likely to benefit from:

Fitter and healthier employees, who are more productive and less likely to take time off sick

Improved time keeping as cycling is a reliable and quick means of transport

An improved environment as cycling reduces congestion, traffic pollution and noise

Phillip Darnton, chairman of Cycling England, said:

“Currently, only three per cent of employees in England travel to work by bike. We’re confident that offering employees bikes at a significant discount will act as a big incentive. We would like to see the number of people cycling to work more than double by the end of 2007. The benefits to businesses are clear – employees who exercise regularly are likely to be more alert, fitter and therefore be more productive and take less time off sick.”

Shan Lawrence, Voluntary Benefits Manager at the Royal Mail Group Plc, who joined the scheme last year said:

“Royal Mail joined the Cycle to Work Scheme to offer employees the opportunity to enjoy the tax break, look at alternative means of transport to work, especially as a large majority travel outside of public transport hours, and encourage a healthier and fitter workforce. We are delighted with the response with nearly 3,000 employees taking part in the scheme so far.”

Employees would ordinarily have to pay income tax on something lent to them for private use by their employer. With the Cycle to Work scheme, employers can provide bikes to their staff as a tax-free benefit provided the bikes are used mainly to travel to and from work. At the end of the agreed loan period, employees may then have the opportunity to buy the bike, resulting in an overall saving of up to 48 per cent of the retail price.

Click on the link below for full info on the scheme.
www.bikeforall.net/content/cycle_to_work_scheme.php