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Rachel Reeves has promised to axe luxury Motability cars and stop flashy motors being paid for by taxpayers. Labour Party Chancellor Ms Reeves will take an axe to the Motability scheme as she tries to cut the bloated welfare bill.

Among the perks being scrapped are plush cars being on the scheme, overseas breakdown cover, insurance for up to three named drivers, and tax breaks such as the VAT exemption.

A Treasury source said Ms Reeves was determined to tackle the “unfairness”. They added: “The Chancellor is worried the Motability scheme has lost its focus on its original purpose — helping disabled people get the mobility they need, and is now offering high-end packages. She has asked how the scheme can be made fairer and fit for purpose.”

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