Written question asked by Neil Duncan-Jordan (Independent (affiliation)) on Friday, 17 October 2025, in the House of Commons. It was due for an answer on Tuesday, 21 October 2025. It was answered by Dan Tomlinson (Labour) on Monday, 27 October 2025 on behalf of the Treasury.

Bicycles: VAT

Question: To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of removing VAT from children’s bicycles.

Answer

VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. Taxation is a vital source of revenue that helps to fund vital public services.

Evidence suggests that businesses only partially pass on any savings from lower VAT rates. In some cases, reliefs do not represent good value for money, as there is no guarantee that savings will be passed on to consumers.

Secondary information

Type: Written question
Reference: 83214
Session: 2024-26
Subjects: Children Bicycles VAT
Link: View this Written question on www.parliament.uk

Bicycles: VAT

Secondary information

Librarians' tools