Luxury cars removed from Motability scheme

Luxury cars volition nary longer beryllium disposable for Motabiltiy recipients, it has been announced, with the authorities saying much wealth volition besides spell to British manufacturers nether changes.

The announcement comes conscionable days up of the budget, though it does not look that the announcement volition person immoderate alteration to authorities finances.

Motability is simply a strategy whereby radical getting idiosyncratic independency payments (PIP) tin sacrifice portion of their benefits successful speech for a rental vehicle, if they are eligible.

Politics latest: Farage responds to 'racism' claims

Motability vehicles are eligible for taxation breaks, and the strategy has travel nether disapproval for the notable summation successful recipients without disposable disabilities, alongside an summation successful the measurement of PIP recipients.

There has besides been disapproval of the luxury options available, which radical tin wage other wealth for.

Proponents reason the strategy helps radical get astir and allows them to support jobs and unrecorded much independently. The strategy besides pays for adaptations to vehicles if radical request them.

Tonight's announcement comes from Motability Operations, the foundation which operates the scheme.

It says the purpose is for 50% of vehicles leased done the strategy to beryllium built successful Britain by 2035, claiming it volition enactment UK economical maturation with a request for 150,000 vehicles each year.

However, luxury brands specified arsenic BMW and Mercedes volition beryllium removed arsenic options, alongside the likes of Jaguar and Land Rover, "immediately".

An announcement from Motability said: "In the abbreviated term, Motability Operations volition enactment intimately with UK-based manufacturers to summation the stock of British-built vehicles leased by customers, portion maintaining affordability, prime and quality.

"This includes doubling the fig of Nissan British-built vehicles that the strategy leases to astir 40,000.

"The volition would beryllium that 25% of cars connected the strategy would beryllium UK-built by 2030, up from 7% today."

Chancellor Rachel Reeves said: "Backing British car manufacturing volition enactment thousands of well-paid, skilled jobs and is precisely the semipermanent concern our Modern Industrial Strategy delivers.

"We are increasing the system to bring down debt, chopped NHS waiting lists and chopped the outgo of living."

Read more:
What taxation rises could beryllium announced this week?
Reeves hints astatine much payment cuts

The authorities is contiguous refusing to accidental if it volition alteration the Motability eligibility criteria successful the budget, with immoderate changes successful this respect apt to travel astir arsenic a effect of the Timms reappraisal into PIP.

Earlier this year, the authorities tried to trim the swelling PIP bill, but was defeated by its ain backbenchers, launching a reappraisal chaired by curate Stephen Timms to look astatine the system.

Mr Timms said past period that "there volition beryllium nary changes to the eligibility conditions for the mobility constituent of the idiosyncratic independency payment" until his reappraisal finishes successful a year's time.

👉Listen to Politics At Sam And Anne's connected your podcast app👈

It is wide expected the authorities volition summation payment spending successful the fund by scrapping the two-child payment cap.

Taxes are besides expected to rise, arsenic the authorities wants to find much headroom and debar cutting budgets.