Should the government remove VAT relief from some new Motability leases?

Reforms to the Motability scheme removing VAT relief from some new leases came into force on 1 July 2026. The change is expected to save taxpayers £1 billion by 2030 as part of wider welfare reforms forecast to save nearly £2 billion by the end of the decade. The government states the scheme will continue to support disabled people’s access to cars, scooters and powered wheelchairs.