A major overhaul of the Motability Scheme will see high-end brands such as Mercedes-Benz and BMW removed from its vehicle list immediately. It comes after years of controversy over whether taxpayers were effectively subsidising luxury motoring for benefits claimants.

Motability Operations, which runs the scheme, announced this week that it will refocus its fleet on “value and purpose”, prioritising safe, reliable and affordable vehicles that better reflect the needs of disabled customers. At the same time, the organisation has set a striking new target: by 2035, half of all cars leased through Motability will be British-built, a move it says will boost domestic manufacturing and create demand for up to 150,000 UK-made vehicles a year.

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