Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the impact of (a) VAT and (b) Insurance Premium Tax exemptions on the affordability of Motability Scheme advance payments.

The Motability Scheme allows those eligible for a qualifying mobility allowance to lease a new car, Wheelchair Accessible Vehicle, scooter or powered wheelchair. The Motability Scheme receives relief from VAT and Insurance Premium Tax.

The level of advanced payments is commercially determined by the Motability Operations Group, which is independent of Government. A number of vehicles are currently available through Motability without any additional payment beyond the enhanced Mobility component of PIP.

The Government keeps all taxes under review, and the Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances.