Rachel Reeves and Keir Starmer (Image: Getty)
Labour have been accused of deserting British firms after tariffs were axed on Chinese made electric bikes.
Furious British bicycle manufacturers have warned they will be “driven out” of the country as the UK becomes swamped by cheap e-bikes from China.
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Safety fears have also been raised about the standard of batteries, which are used to power the bikes, coming from the Far East.
The tariffs, inherited from the EU following Brexit, have been scrapped on all non-folding e-bikes to the UK following a review by the Trade Remedies Authority (TRA).
The TRA said it would save the UK up to ￡51million each year and that consumers, on average, could save around ￡200 each on cheaper e-bikes.
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But Wayland Austin, Founder of Austin Cycles Ltd, said the move will decimate British manufacturers and damage the economy.
“This decision flies in the face of the Government’s commitment to sustainable and resilient economic growth,” he said.
“The Government should be encouraging high-quality manufacturing back to the UK.
“This decision will drive UK cycling manufacturers out of the UK, which will hit the UK economy, cost jobs and reduce our advanced manufacturing base.”
Mr Austin said the government should be “backing British bikes” instead of making it easier for cheaper foreign firms.
“We should not be outsourcing our industrial wealth and prosperity to overseas countries.
“This decision will likely lead to the market being flooded by cheaper and less safe foreign imports at a time when the Government are rightly focused on improving e-bike and battery safety.”
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Currently, Chinese bike manufacturers benefit from substantial subsidies, including tax breaks and government grants—advantages unavailable to UK companies.
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Over the past two years, the cycle industry has experienced significant price discounting, yet sales have continued to decline.
A spokesperson for the Department for Business and Trade 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.
“We’re continuing to take action on unsafe e-bikes and recently launched our “buy safe, be safe” campaign to raise awareness of the risks of dangerous e-bike batteries and scooters.”