The Chancellor may have cut VAT, but a specialist cycle firm wants to see the tax entirely scrapped on its products.Loughborough electric cycle company 50cycles.com called on the Government to stop putting VAT on bicycles, as a way of reducing traffic congestion and pollution.

Co-owner Scott Snaith said the move, which would effectively cut prices by 17.5 per cent, would make cycling more attractive.

"Cutting VAT from both traditional and electric bikes would help them become more affordable for both individuals and families," he said.

"I feel it would work better than other tax incentives currently being used to help the environment."

The company said its turnover in the year to November 30 would be £1 million - up from £680,000 in 2007.

The 47 per cent growth came after the firm faced bankruptcy last year when it suffered a devastating fire, forcing it to move from Little Moor Lane to its current site in Prince William Road.

The company, which employs six people, was set up five years ago by Mr Snaith and brother, Tim. They sell German-made Kalkhoff electric cycles, as well as Univega bikes.

The Modern Masonry Alliance, an organisation based in Leicester, has called for VAT to be scrapped on building products for two years, to help the construction industry and save thousands of jobs.

Source: Leicester Mercury

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