In a significant shift for disabled drivers and the British automotive sector, the Motability scheme has announced it will immediately stop offering premium cars like BMW and Mercedes-Benz. The move is part of a new strategy to prioritise vehicles built in the UK, with a bold target for half of its fleet to be sourced from British factories by 2035.
A Strategic Pivot to British Manufacturing
Chancellor Rachel Reeves has endorsed the changes, stating they will "support thousands of well-paid, skilled jobs" across the country. This announcement comes just ahead of the budget, signalling a renewed focus on bolstering domestic industry.
The Motability scheme, which has operated for decades, provides vital support to disabled people by leasing them cars, many of which are specially adapted for wheelchair access. The scheme purchases vehicles directly from manufacturers and leases them to users, helping to manage the extra costs associated with mobility issues.
It is important to note that the removal of premium brands comes despite the fact that these models, which constituted around 40,000 of the scheme's 800,000 vehicles, were offered at no extra cost to the taxpayer. Disabled drivers who chose these cars covered the additional expense themselves.
Boosting Production and Supporting Jobs
The new commitment to British manufacturing could provide a major boost to the UK car industry, which has faced years of decline and factory closures. Current annual production is forecast to slump below 700,000 units following a cyber-attack on Jaguar Land Rover.
Motability Operations, the company running the scheme, currently leases about 300,000 vehicles a year. To meet its 50% target by 2035, it would need to lease approximately 150,000 British-built vehicles, a dramatic increase from the 22,000 it sourced last year.
This prospect of over 100,000 additional guaranteed sales is welcome news for manufacturers with UK plants, such as Nissan in Sunderland and Toyota in Burnaston, Derbyshire. The move may also incentivise BMW to proceed with the production of electric Mini models at its Oxford factory.
Industry Reaction and Future Outlook
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 ambitious commitment should put British car manufacturing into top gear."
Nissan is set to be an early beneficiary, with the number of its UK-built cars bought by Motability expected to double. James Taylor, Managing Director of Nissan GB, welcomed the commitment, recognising the "crucial role the Motability scheme plays in helping disabled people remain mobile and independent."
While the government has considered removing tax breaks for the scheme, which exempts disabled users from VAT and insurance premium tax, disability advocates have warned that such a move would add thousands of pounds to costs, making essential travel more difficult.
