8:19 am, October 23, 2025
Vertu boss Robert Forrester has hit out at government policy amid rumours of a potential VAT levy on Motability scheme vehicles.
Forrester, who has been a vocal critic of the ZEV mandate for a number of years, said that car ownership is now ‘subject to tax at every point’.
He added that any potential ‘Blue Badge Tax’ could have a detrimental impact on the motor trade, potentially putting jobs at risk.
The comments came in a speech to the London Press Awards, in which the former Undercover Big Boss star also criticised the UK’s EV strategy.
Speaking at Stationers’ Hall, the 56-year-old said: ‘Car ownership is subject to tax at every point: VAT on purchase price, registration fees, luxury car tax on modest cars, vehicle excise duty, company car tax, VAT on fuel and then fuel duty on top, road tolls and parking charges, if that is not enough the Government seems to be considering a new tax.
‘Let’s call it what it is; a Motability tax, or a Blue Badge Tax.
‘Instead of tackling the real problem of who qualifies for the subsidised cars for disabled people, we are hearing about an extraordinary policy to levy VAT on the vehicles – a Blue Badge tax which could increase what the car costs by an average of £6,500.
‘This would force disabled people to choose the cheapest models or abandon them altogether. Some disabled people need more complicated cars, such as estates or larger hatchbacks.
‘The idea has industry consequences too; it would increase the cost of the cars, which would reduce the numbers ordered, which would reduce the numbers manufactured in the UK costing jobs, and also leading to a reduction in cars entering the second-hand market later, thus increasing the cost of used cars in three years time.
‘I know a free press will give this crazy idea the scrutiny it needs to expose it for what it is; a tax raising gimmick which avoids tough welfare reform.’
ZEV mandate based on ‘eco-zeitgeist rather than practical reality’
Forrester also used his speech to return to one of his favourite subjects – the ZEV mandate.
The Vertu boss has taken several swipes at the policy over recent years and has said it has forced manufacturers to limit the supply of ICE vehicles to dealers.
He has now expressed doubts over whether carmakers will be able to meet next year’s 33% target, despite Labour making significant changes to the legislation at earlier this year.
Taking aim at the policy once again, Forrester told attendees at the awards ceremony: ‘Governments of both colours supported environmental rules that favour electric vehicles, doing so because of the eco-zeitgeist rather than practical reality.
‘It was difficult to push back against this without being wrongly labelled a climate change sceptic.
‘Thanks to your help and responsible reporting, the arguments for a more pragmatic approach were heard. A free press was able to challenge the status quo in a way that helped UK businesses and consumers alike.
‘We might ask you to take a look again next year as the ZEV Mandate is for 33% of new vehicles to be electric, I very much doubt manufacturers will reach the target and fines and rationing will be the result.
‘Our firm doesn’t want to be involved in controversy, but the motor sector needs your attention again.’
Car Dealer has approached the government for comment.
