Cycling pumps £2.9bn a year into economy

The figure includes £51m in revenue for British manufacturers from the 3.7 million cycles sold in 2010 - a rise of 28 per cent on the number sold in 2009.

The gross cycling contribution of £2.9bn for the economy takes into account factors such as bicycle manufacturing, cycle and accessory retail and cycle-related employment.

Published today by broadcaster Sky and British Cycling, the report said that every cyclist in the UK has a “gross cycling product” of £233 annually.

Employing around 23,000 people, the UK cycling sector made a £500m employment contribution in 2010, including more than £100 million in income tax and National Insurance contributions last year, the report said.

A total of 208 million cycle journeys were made in 2010, with a net addition of 1.3 million more cyclists taking to their bikes compared to the previous year, bringing the total to 13 million.

Of these new cyclists, half a million are now cycling regularly. New cyclists alone contributed £685m to the UK economy, with existing regular cyclists representing a total market value of £635m.

The report also showed that regular cyclists take 7.4 sick days per year, compared with 8.7 sick days for non-cyclists, saving around £128m through reduced absenteeism, with projected savings of £2bn over the next 10 years.

The report said a 20 per cent increase in cycling levels by 2015 would save Britain’s economy £207m in reduced traffic congestion, £71m in lower pollution levels and £52m in NHS costs.

Dr Alexander Grous, of the LSE, who conducted the research, said: “The good news is that structural, economic, social and health factors seem finally to have created a true step-change in the UK’s cycling scene.”

Stewart Kellett, British Cycling’s recreation director, said: “This report is further evidence that when more people get involved in cycling there are measurable benefits to the individual, their family, their employer, the environment and the economy as whole.”

Ian Austin MP, vice-chairman of the All-Party Parliamentary Cycling Group, said: “This important report shows that encouraging greater participation in cycling can bring not only social but economic benefits for Britain.”

David Wild, chief executive of Halfords, Britain’s biggest cycle retailer, said: “Cycling is fun, healthy and green, and interest in cycling is growing fast. Cycling is becoming a part of daily life for more and more people.”

Transport Minister Theresa Villiers said: “The Government is committed to encouraging cycling as a healthy and enjoyable way of getting around. It helps reduce congestion, gives children more opportunities for exercise, and it can play a part in the fight against climate change.”