"Rachel Reeves is planning to restrict disabled people's access to cars through the benefits system in a bid to save 1bn, it has emerged. The chancellor is reportedly considering reforming the Motability scheme in a bid to save money and boost public confidence in the welfare system. She is said to be ready to axe tax breaks worth around 1bn each year in next month's Budget, cutting an exemption which lets cars leased under the scheme avoid paying VAT or insurance premium tax."
"And, in another change, luxury cars including Mercedes and BMWs could be removed from the scheme, The Times reports. It comes as the chancellor has been warned by the Institute for Fiscal Studies that she needs to find at least 22bn of tax hikes or spending cuts in her November Budget in order to avoid a groundhog day scenario of facing another black hole in the public finances next year."
Chancellor Rachel Reeves is proposing reforms to the Motability scheme aimed at saving around 1bn. Plans reportedly include removing VAT and insurance premium tax exemptions for cars leased through the scheme and excluding luxury models such as Mercedes and BMW. The changes would affect roughly 815,000 users, including about 40,000 who currently use luxury vehicles. Eligibility is tied to qualifying mobility allowances, most commonly the Personal Independence Payment (PIP). The Institute for Fiscal Studies has warned that at least 22bn of tax rises or spending cuts will be needed in the November Budget to avoid further fiscal shortfalls.
Read at www.independent.co.uk
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