Motability scheme will no longer use ‘expensive’ luxury cars ahead of UK Budget

Live Motability scheme will no longer use ‘expensive’ luxury cars ahead of UK Budget Craig Munro Published November 25, 2025 6:53am Updated November 25, 2025 7:30am Share this article via whatsappShare this article via xCopy the link to this article.Link is copiedShare this article via facebook Comment now Comments

The charity which runs the Motability has announced Mercedes and BMW luxury cars will no longer be available for recipients ahead of the 2025 UK Budget.

Under the Motability scheme, personal independence payment claimants with serious mobility problems can sacrifice some of their payments to lease a new vehicle.

There’s been criticism in the past of the types of cars available for use in the scheme, and now BMWs, Mercedes will be removed as options, alongside the likes of Audi, Lexus, and Alfa Romeo cars.

Motability Operations, the charity which operates the scheme, said it will focus on British-built cars instead, and it hopes that 50% of the vehicles it offers will come from British factories by 2035.

The change to the scheme is the latest announcement that has been made ahead of Rachel Reeves’ second Budget, which will take place tomorrow afternoon.

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Sort: Newest first Oldest first November 25, 2025 7:19 am Reeves calls in for support from MPs ahead of Budget Isobel Frodsham

The Chancellor has reportedly urged Labour MPs to back her forthcoming Budget, as the final day before the major Government financial statement dawns.

Reeves called for unity within the Labour Party as she spoke to restive backbenchers on Monday night, urging them to support her efforts to steer the national economy.

Many Labour MPs are understood to have become increasingly frustrated about the prospect of tax rises on the horizon, amid their party’s opinion poll slump less than two years into a term of government.

At the gathering of the Parliamentary Labour Party, Ms Reeves told MPs that politics is a ‘team sport’, in an apparent call for unity.

Chancellor of the Exchequer Rachel Reeves attends a cabinet meeting at 10 Downing Street on September 9 (Photo by Toby Melville – WPA Pool/Getty Images)

The Chancellor’s decision to remind MPs of this was ‘because united parties are the ones who win elections’, according to a Treasury spokesman.

Ms Reeves also described the Budget as a ‘package’ not a ‘pick ‘n’ mix’, urging MPs to back the whole of it rather than single out parts they dislike for criticism.

The Chancellor also told MPs the Budget will focus on three priorities: ‘Cutting the cost of living, cutting NHS waiting lists and cutting the cost of debt.’

Reeves is widely expected to pull the lever on tax hikes in order to fill a black hole in the public finances, a move which is expected to face criticism among MPs and voters.

Add Metro as a Preferred Source on Google Add as preferred source November 25, 2025 7:09 am Motability says Nissan numbers will double Isobel Frodsham

An announcement from Motability said: ‘In the short term, Motability Operations will work closely with UK-based manufacturers to increase the share of British-built vehicles leased by customers, while maintaining affordability, choice and quality.

‘This includes doubling the number of Nissan British-built vehicles that the scheme leases to around 40,000.

‘The intention would be that 25% of cars on the scheme would be UK-built by 2030, up from 7% today.’

The scheme currently leases about 300,000 vehicles a year. Assuming it remains about the same size, that would mean 150,000 British-built vehicles being leased in 2035 – up from 22,000 last year.

BMW said it was ‘disappointed’ with the news and confirmed to The Telegraph it will work with Motability ‘to ensure prompt vehicle delivery for any existing orders’. Mercedes has yet to comment.

Add Metro as a Preferred Source on Google Add as preferred source November 25, 2025 6:48 am Welcome to Metro’s Budget live blog Isobel Frodsham

Good morning, welcome to Metro’s Autumn Budget live blog.

The latest Budget news dropped last night, with reports that Mercedes and BMW luxury cars will no longer be available for people on the Motability scheme.

Under the Motability scheme, personal independence payment claimants with serious mobility problems can sacrifice some of their payments to lease a new vehicle.

There’s been criticism in the past of the types of cars avaliable for use in the scheme, and now BMWs, Mercedes will be removed as options, alongside the likes of Audi, Lexus, and Alfa Romeo cars.

Motability Operations, the charity which operates the scheme, said it will focus on British-built cars instead, and it hopes that 50% of the vehicles it offers will come from British factories by 2035.

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