Overview
- Social Justice Secretary Shirley-Anne Somerville has written to UK ministers urging them to drop reported plans to change Motability, citing fears over higher costs and reduced access.
- Media reports say Chancellor Rachel Reeves is considering removing VAT and insurance tax breaks and limiting access to luxury models to recoup about £1 billion.
- Motability has indicated that advance payments for vehicles could rise significantly if VAT arrangements change, increasing pressure on household budgets.
- Somerville says Scotland was not consulted despite the Accessible Vehicle and Equipment scheme being devolved, with 87,843 customers in Scotland and about 815,000 users across Britain.
- Treasury sources argue the scheme offers a taxpayer-subsidised premium experience, while the UK Government stresses Motability’s operational independence and declines to pre-empt Budget decisions.