To ask the Scottish Government what representations it has made to the UK Government regarding the impact on service users in Scotland of changes to Motability scheme costs and mileage arrangements arising from its Autumn Budget 2025 tax changes.
The Scottish Government has been working closely with Motability to understand how any changes it is considering to its provision as a consequence of the removal of tax exemptions in the UK Budget might affect customers in Scotland, including those living in rural, remote rural and island communities.
The UK Government did not consult the Scottish Government on its changes to the associated tax exemptions in the November 2025 Budget, despite the clear and significant impacts for the devolved Accessible Vehicles and Equipment (AVE) Scheme in Scotland under which Motability is the provider. Scottish Ministers wrote to the UK Government in November upon becoming aware of the potential tax changes, emphasising that they would cause significant fear and uncertainty for disabled people who rely on the AVE Scheme to remain mobile.
The 1 July 2026 commencement announced by Motability for its changes in the rest of the UK is not set to apply in Scotland. However there may need to be future changes to Motability’s provision in Scotland under the AVE Scheme as a result of the UK tax changes, in which case customers will be notified as soon as possible.
The Scottish Government remains committed to the AVE Scheme and ensuring that eligible clients get the right support to meet their needs and to allow them to remain independent.