Chancellor says she ‘can’t leave welfare untouched’ this parliament as budget looms

Rachel Reeves understood to be eyeing cuts to Motability scheme as she tries to plug hole in country's finances

Rachel Reeves has said she can't leave welfare untouched" this parliament, with the Treasury understood to be considering axing up to 1bn in tax breaks for a scheme providing cars for disabled people.

The chancellor set out her thinking on welfare before next month's budget in an interview, having previously said she would need to make cuts and raise taxes.