Motability warns disabled customers face £400+ average cost increase from Reeves' tax changes

Tax changes announced by Labour chancellor Rachel Reeves last November will cost disabled people who lease a Motability* car more than £400 each on average, the company that runs the scheme has told Disability News Service (DNS).

Reeves announced last November that she was imposing VAT at 20 per cent on most advance payments for cars leased through the Motability scheme and removing the current 12 per cent insurance premium tax exemption.