The Motability scheme, which helps disabled drivers lease subsidised vehicles, is removing high-end brands like BMW and Mercedes-Benz and plans to increase its use of British-built cars.
Motability says it wants half of all its vehicles to come from UK factories by 2035. Ahead of Wednesday’s Budget, Chancellor Rachel Reeves said the shift will help support “thousands of well-paid, skilled jobs”.
The scheme has operated for decades by buying vehicles from manufacturers and leasing them to eligible disabled drivers, including models adapted for wheelchair access. Premium brands made up only about 5% of the scheme’s 800,000 cars, even though customers paid the extra cost themselves.
Reeves has also considered reducing tax breaks for the scheme, which currently exempts disabled drivers from VAT and insurance premium tax. Disability Rights UK warned that adding VAT would increase costs by thousands of pounds and make travel far less affordable.
Motability Operations, which runs the scheme, declined to comment on the Budget discussions but confirmed that premium brands would be removed “immediately” so the scheme can “focus on vehicles that meet disabled people’s needs and represent value and purpose”.
Boosting the share of British-made cars could give the UK automotive industry a much-needed lift. Nissan and Toyota produce vehicles in Sunderland and Derbyshire, while Mini’s Oxford factory could also benefit if it resumes building electric models. Motability Operations said the move “opens the door to new investment into UK car manufacturing”.
The scheme leases around 300,000 vehicles a year. If that continues, the 2035 target would mean around 150,000 British-built models being leased annually, compared with just 22,000 last year.
With UK car production expected to fall below 700,000 this year - partly due to a cyberattack that halted Jaguar Land Rover’s output - the promise of over 100,000 extra domestic sales is significant. None of the models currently built by JLR qualify for the scheme.
Andrew Miller, chief executive of Motability Operations, said: “Working with government and the automotive sector, we want to do even more to support the economy, and our commitment should put British car manufacturing into top gear.”
Nissan is expected to benefit early, with Motability set to double the number of its UK-built cars in the fleet. James Taylor, managing director of Nissan GB, said the company welcomes Motability’s commitment to British manufacturing and looks forward to helping deliver its goals.
