Motability to Drop Luxury Cars and Back UK Manufacturing
Big changes are coming to the Motability scheme, the long-standing program that helps disabled people lease vehicles with government support. The organization has announced it will remove high-end brands like BMW and Mercedes-Benz from its roster and shift its focus toward British-built cars. The move is part of a wider plan to ensure that, by 2035, half of the vehicles available through Motability come from UK factories.
This scheme has been a lifeline for disabled drivers for decades, helping cover extra costs related to mobility. Cars are leased to eligible individuals, with some models adapted for wheelchair access. Interestingly, while premium brands like BMW and Mercedes were available at no extra taxpayer cost, disabled drivers often paid more themselves to access them. These luxury vehicles made up only around 5% of the total 800,000 cars in the scheme, meaning the change affects a relatively small number of users.
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Chancellor Rachel Reeves highlighted that the shift will support thousands of skilled jobs in the UK car industry. By prioritizing British-made vehicles, the scheme aims to give a boost to domestic manufacturers like Nissan, Toyota, and Mini, potentially encouraging more investment and production in local factories. For example, Nissan’s Sunderland plant and Toyota’s Derbyshire factory are expected to benefit immediately, with the number of UK-built vehicles purchased by Motability doubling in the near term.
Andrew Miller, CEO of Motability Operations, emphasized that working with both the government and the automotive sector could bring new opportunities for the UK economy. By increasing the share of British-built cars in the scheme, more than 100,000 additional vehicles could be produced locally each year by 2035, a welcome boost for an industry that has faced factory closures and declining production in recent years.
Critics have previously raised concerns about luxury vehicles being accessible to people without visible disabilities, and about the potential cost of tax changes. The scheme currently benefits from VAT and insurance premium exemptions for disabled people, which disability groups warn would increase costs dramatically if removed. Motability has not commented on potential budget-related tax measures but insists the focus remains on value, accessibility, and meeting disabled drivers’ needs.
The immediate removal of brands like BMW, Mercedes, Audi, Lexus, and Alfa Romeo marks a significant shift. The plan also aims to double Nissan’s UK-built vehicles in the scheme to around 40,000 and gradually increase the share of British-made cars to 25% by 2030. Reeves underlined that supporting local car manufacturing is a strategic investment, creating jobs, growing the economy, and ultimately helping tackle the cost-of-living pressures facing households.
In short, Motability’s decision represents a major pivot toward British manufacturing while continuing to provide essential support for disabled drivers, balancing economic goals with social impact. The next decade could see a substantial transformation in both the UK car industry and the way mobility support is delivered.
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