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Reeves: Welfare cannot be left ‘untouched’ in Budget
The plan targets £1bn in tax relief by removing VAT and insurance exemptions and limiting luxury vehicle access to improve welfare system fairness, affecting 815,000 users.
- Next month Rachel Reeves is said to be ready to axe tax breaks worth around £1bn in next month's Budget by cutting VAT and insurance premium tax exemptions for the Motability scheme.
- Amid criticism in recent months, Reeves's plans follow officials saying reforms aim to save money and boost confidence after Tory conference attacks citing critics who mention 'sickfluencers'.
- The scheme's scale and finances show that the Motability scheme supports around 815,000 users, including around 40,000 luxury vehicles, and costs taxpayers two, with the Motability Foundation’s chief executive earning £658,000 last year.
- Disability groups said the proposals would make life more expensive for those with serious health conditions, while James Taylor, strategy director, warned restricting eligibility could hit lower-income disabled people hard.
- Political parties and former officials urged reassessment as a Treasury spokesman said the department would not comment on speculation around tax changes outside fiscal events.
10 Articles
10 Articles
Rachel Reeves considers cutting £1bn tax break for Motability scheme in Budget - 'Takes away our freedom'
Chancellor Rachel Reeves could consider making major changes to the popular Motability scheme in the upcoming Autumn Budget, which could impact how disabled people access vehicles.Reports suggest that the Chancellor is monitoring reforms to the Motability scheme to save around £1billion a year.It comes as Rachel Reeves looks to plug a £50billion financial black hole, with the Labour MP already suggesting that tax rises could be introduced.The Ti…
Rachel Reeves’ budget must reduce inequalities and increase spending capacity of the masses
Prem Sikka is an Emeritus Professor of Accounting at the University of Essex and the University of Sheffield, a Labour member of the House of Lords, and Contributing Editor at Left Foot Forward. On 26 November, the UK Chancellor Rachel Reeves will present her and Labour government’s second budget to chart the future economic course. The budget will be presented against the background of a bleak inheritance from the 2010-2024 Conservative governm…
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