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The Motorsport Industry Association (MIA) has welcomed the Government’s decision to scrap a controversial motor insurance law that required insurance for a wide range of vehicles, including ride-on lawnmowers and mobility scooters.

The VNUK insurance issue arose in 2014 following a court case involving a Slovenian man who was injured by a reversing tractor seven years prior.

Had the law been implemented in the UK, the Government said the insurance industry would have been liable for almost £2 billion in additional costs. As a result of leaving the EU, the move will now ensure British drivers are spared an estimated £50 annual increase in insurance premiums.

The Motorsport Industry Association (MIA) has called for the EU to follow suit.

Motorsport UK also showed its support. It said adding VNUK would have posed an “existential threat” to the sport, “risking tens of thousands of jobs in the process”.

Transport Secretary Grant Shapps said the decision is part of a “new and prosperous future for the UK outside the EU”.

He said, “We have always disagreed with this over-the-top law that would only do one thing – hit the pockets of hard-working people up and down the country with an unnecessary hike in their car insurance. I am delighted to announce that we no longer need to implement it.”

MIA CEO Chris Aylett said, “Thanks to the work of the secretary of state and his Transport Department colleagues, motorsport in the UK is now safe. However, this is not the case in our major export market – the EU’s 27 countries.

“The global success of the £10bn Motorsport Valley UK industry, with 40,000 jobs, relies heavily on EU-based suppliers and customers. They could still be put out of business if the EU’s proposed VNUK law does not exempt motorsport”.