To remove premium brands (which is more accurately what brands like BMW and Mercedes are – ‘luxury’ brands are things like Bentley!) would be idiotic, but would satisfy the schemes critics who have absolutely no clue about the scheme or how the car industry works.
These brands tend to have better residual values, which reduce scheme costs, and coupled with the high APs, (which probably help offset the fact that these manufacturers may not need to offer such huge discounts as those manufacturers whose cars depreciate much more significantly), removal of them does absolutely nothing to improve the perceived cost to the tax payer.
Unless I’m missing something, the only thing that would reduce the cost to the exchequer would be a price cap (regardless of brand or type of car), as this would reduce the amount of VAT exemption? However, that would be problematic for their desire to push EVs through the scheme, as they tend to have higher retail prices!
We only have to wait until tomorrow to find out what, if any, reference to Motability will be in the budget (although it would more likely be buried in the ‘Red Book’ that is published once the Chancellor delivers the statement, rather than the speech itself), but I wouldn’t be surprised if there’s no mention of it.
As I understand it, there is due to be a review of benefits like PIP at the end of next year which will most likely include the qualifying criteria that gives access to the Motability scheme. If true, it makes more sense to park any changes to the scheme (or those who qualify for it) until then, but as the flip-flopping on taxation in recent weeks has shown, common sense and this government aren’t happy bedfellows, so it’s anybody’s guess 😂