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UK reforms its'motability scheme' to curb 'generous taxpayer subsidies

Rachel Reeves, British Finance Minister, said that she intends to reform the "motability" scheme, which allows disabled people to lease cars with state funding. She described this as a "generous subsidy".

This scheme allows those who qualify for a public-funded allowance to improve their mobility, to use that funding in order lease a vehicle. Tax breaks are available on both the leasing and insurance cost.

According to the company that manages Motability, the number of customers is more than 850,000.

The scheme was criticised because in some cases it was used to lease luxury cars, but the list of vehicles eligible for the scheme was narrowed earlier this week.

Reeves stated in her budget that the'motability scheme' was created to protect those who are most vulnerable and not to subvention the lease of a Mercedes Benz. I will therefore be making reforms to reduce the generous taxpayer subsidies," she said. (Reporting and Editing by Catarina demony; William James)

(source: Reuters)