British businesses making e-bikes have described a decision by Labour to scrap tariffs on cheap Chinese imports as a “kick in the teeth” that will “flood” the market.
UK firms were stunned this week when Business Secretary Jonathan Reynolds appeared to bend the knee to Beijing by accepting recommendations to lift the tax on e-bikes made in China.
The border taxes, which have existed since Brexit, are the same as those imposed by the EU, but Mr Reynolds has decided to remove the levy for non-folding e-bikes from Friday (February 7).
Labour claim removing the tax could save UK consumers as much as £200 on a new e-bike, but UK manufacturers of the electric transportation devices say it puts their firms at risk.
Speaking to the BBC, James Metcalfe and his brother Lyle, who run e-bike company Volt from factory in Milton Keynes, said: “I think this is an odd decision, and a kick in the teeth for UK manufacturing.
“What’s the benefit? I don’t see any. The government are saying there’ll be savings for the UK consumer, but for years we’ve been pushing government to put through alternative savings like grants and subsidies for customers.
“Why not do what everyone else has done across Europe? Provide grants and invest in bike infrastructure in the UK.”
Under the new tariff measures, Labour accepted a recommendation from the Trade Remedies Authority to revoke a tax of between 10% and 70.1%.
A government spokesperson said: “Defending UK industry from unfair competition is important, which is why we’ve taken the decision to continue protecting UK folding e-bike producers based in the UK, whilst also lowering prices for consumers and importers of other products.”
The e-bike industry has endured some tough trading conditions in recent months after a boom following the Covid pandemic when many people wanted to use them to enjoy outdoor activities.
Safety fears have also been raised over the bikes, with illegally modified versions being caught speeding, or starting fires when using faulty batteries or re-charging points.
David Miall, who runs e-bike company Wisper Bikes, said customers were already getting discounted sales but that the “very strange” decision by the government would now “flood” the UK market with Chinese imports.
He added: “It’s a very scary time for the industry right now, and this will cause a lot of trouble for a lot of companies.
“I think the government are thinking ‘Let’s give e-bikes a boost’ but this has been badly thought-through by people who don’t understand the industry.”
