Chancellor Rachel Reeves could consider removing leases for “luxury cars” from the Motability scheme in the upcoming Autumn Budget.

The Motability scheme has come under scrutiny in recent months amid claims that people were taking advantage of the benefits initiative to access high-end vehicles.

Claimants who receive Personal Independence Payments and have serious mobility problems can lease a new vehicle if they receive the higher benefit rate.

Reports have suggested that some claimants have been able to access premium cars from manufacturers like Mercedes-Benz and BMW.

Chancellor Rachel Reeves is reportedly looking into making changes to the Motability scheme to save money.

The Labour MP for Leeds West and Pudsey will deliver the Budget on November 26, and could need to fill a £50billion financial black hole.

Transport Secretary Heidi Alexander hinted at supporting measures to end leases for “luxury” vehicles.

She said: “I think that the Motability scheme provides really important support to people who have mobility needs.

“I think some of the cars that people have been able to access… there’s some luxury models,” she told LBC.

The Transport Secretary said the Government needed to make sure the scheme was available for people who “genuinely need it”.

Ms Alexander, who represents Swindon South for Labour, added that the scheme needs to ensure that taxpayers are receiving good value for their money.

“If that means that models such as really high-end cars, Mercedes, BMW, aren’t available on that scheme, then that’s something I would be comfortable with,” she added.

LATEST DEVELOPMENTS

• M6 traffic: Serious collision prompts major police investigation as drivers face two-hour delays
• Labour’s Electric Car Grant faces scrutiny as ‘significant’ gaps fail to attract petrol and diesel drivers
• Car finance scandal compensation scheme is ‘unfit for purpose’ as millions of drivers could lose out

A spokesperson for the Prime Minister said they would not comment on Budget speculation ahead of the official announcement later this month.

However, they said the Government would “always scrutinise spending of taxpayers’ money”, which is a “guiding principle” for Government work.

Reports suggested that the Chancellor could be considering removing entitlement to the scheme for those claiming sickness benefits.

Concerns have been raised that including luxury vehicles in the scheme could undermine wider public confidence in the benefits system.

The customer base of the Motability scheme has grown exponentially in recent years, soaring to around 815,000.

Drivers are able to access a wide range of vehicles through the scheme, including small hatchbacks to large SUVs from many of the most popular manufacturers in the world.

A HM Treasury spokesperson told GB News that the Chancellor does not comment on speculation around future policies.

They added that the Chancellor makes policy decisions at fiscal events, with the next Budget being delivered on Wednesday, November 26.