Reeves' drive to cut Motability

RACHEL Reeves is reportedly planning to reform the Motability scheme that provides vehicles for disabled people, in a bid to save £1billion as part of a drive to plug a £30bn hole in the public purse.

- By Mauricio Alencar

LIFELINE: Scheme could be trimmed

The Chancellor is also considering reducing the number of BMWs and Mercedes some disability claimants can access through the scheme, which is largely government funded.

It has emerged that up to £1bn in savings are set to be made through eliminating VAT and insurance premium tax reliefs, offered under the Motability scheme. Reeves could also restrict which benefits recipients are eligible for free cars — but those reforms could take longer to be introduced.

The Motability scheme provides vehicles to around 860,000 customers, including around 40,000 luxury cars.