Chancellor Rachel Reeves is gearing up to overhaul the Motability scheme as part of an effort to slash more than £1 billion from the budget. The move targets the taxpayer-funded programme that lets over 860,000 disabled Brits lease vehicles without paying VAT or insurance premium tax.
Luxury Motors Under Fire
The scheme, costing taxpayers £2.8 billion a year, faces criticism for allowing access to high-end car brands like Mercedes and BMW. Reports suggest Reeves might impose restrictions on luxury vehicles to tighten spending.
Additionally, there are whispers of a wider review of tax breaks tied to the scheme amid concerns over generosity.
Who Really Qualifies?
Despite the backlash over the scheme’s leniency — with some eligible conditions including tennis elbow, constipation, and anxiety — The Times says Reeves is unlikely to restrict who qualifies for Motability support.
