Cycling contributes almost £3 billion to the UK economy according to a new report from the London School of Economics and Political Science which also reveals that almost a quarter of the population are now cyclists.
The study quantifies for the first time the full economic success story of the UK’s cycling sector which generates £2.9 billion for the British economy, equating to a value of £230 for every biking Briton in the country.
208 million cycle journeys were made in 2010 meaning that there were 1.3 million more cyclists bringing the total UK cycle population to 13 million. The increasing levels of participation mean more money with new cyclists contributing £685 million to the UK economy.
Dr Alexander Grous of LSE’s Department of Management calculated a “Gross Cycling Product” by taking into account factors such as bicycle manufacturing, cycle and accessory retail and cycle related employment.
A 28 per cent jump in retail sales last year led to 3.7 million bikes being sold at an average price of £439 each. Accessory sales also made a significant contribution, followed by a further £500 million through the 23,000 people employed in the sector.
The increased levels of cycling also bring a range of benefits for businesses. Regular cyclists take one sick-day less per year, which saves the economy £128 million per year in absenteeism.
Dr Grous found that over a ten year period the net present value of cost savings to the economy could rise to be £1.6 billion. A 20 per cent rise in cyclists by 2015 could save a stretched NHS £52 million in costs. There are also potential benefits associated with reductions in congestion and pollution.
The study was commissioned and published by Sky and British Cycling.
Dr Grous 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. The growth in involvement we’ve witnessed in recent years feels like a sustainable trend for the first time.
"In order to build on this momentum and follow the lead, in participation terms, of countries like Denmark and the Netherlands, it’s now essential that the industry focuses on converting the many occasional, lapsed and leisure cyclists into regular and frequent riders.”
Stewart Kellett, British Cycling Recreation Director, said: “Building on the success of Beijing and the once in a lifetime opportunity of London 2012, we have an unparalleled opportunity to create a real legacy for cycling as a sport, a recreational activity and as a mode of transport. British Cycling, together with our partners, is making it easier for more people to get on a bike.
"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.“
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