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Rachel Reeves could put 5,000 jobs at risk as the Labour Party government moves to scrap a key car tax benefit for the FIRST TIME. Ms Reeves, who will deliver her Autumn Budget on November 26, plans to axe Employee Car Ownership Schemes next year.

The Labour Party government plans to shake-up how Employee Car Ownership Schemes (ECOS) operate from October 2026. Under the tweak, the scheme would be brought in line with company car Benefit-in-Kind tax rules.

But axing the perk could result in losses exceeding £1billion in sector revenue while threatening approximately 5,000 manufacturing jobs, the Society of Motor Manufacturers and Traders has warned.

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Mike Hawes, SMMT Chief Executive, s

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