Rachel Reeves expected to scrap £300m in tax breaks for Motability scheme

The Motability scheme allows disabled people to use their personal independence payment benefit to lease new cars for three years. Photograph: Benjamin John/Alamy

Rachel Reeves is expected to press ahead with scrapping about £300m in tax breaks for the Motability scheme that helps provide cars for disabled people, in a move likely to spark concerns among some Labour MPs.

The Treasury was reported to have been considering axing tax breaks up to £1bn but savings will not be as high as that figure, with concerns among ministers that some policy options could have led to Motability’s collapse.