VAT cuts passed on to Severn bridge motorists (From South Wales Argus)

VAT cuts passed on to Severn bridge motorists

10:30am Saturday 20th December 2008

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RECENT VAT reductions will be passed on to motorists using the Severn Bridges.

In November, the Argus reported that Severn River Crossing PLC (SRC) was only “considering” passing on VAT cut, which fell from 17.5 per cent to 15 per cent.

Yesterday, the Highways Agency announced that the 2.5 per cent reduction would be passed on motorists using the bridge.

Jim Clune, SRC general manager, said: “We know that the Highways Agency and the Department of Transport were working very hard to ensure this happened, but the only way that the tolls can be changed is by an order from the minister. As a company, we don’t have the power to change them.

“We had a lot of concerned people contacting us about not passing on the cuts. It’s taken a few weeks, but the Highways Agency has now secured an order from the minister.”

Cars currently pay £5.30 to cross the border.

If the cut had not been passed on, car drivers would have paid £5.50 from January 1, but now they will pay £5.40.

South Wales East AM Mike German was among those who called for the charges to be reduced. He welcomed the announcement, but is still calling for UK transport ministers to freeze the tolls to help the Welsh economy.

Mr German said: “This is good news for the thousands of people who cross the bridge every day. We are experiencing difficult economic times and any reduction in the crossing tariff is to be welcomed.

“Freezing the tolls would be a goodwill gesture to Wales, and a boost to the whole Severnside economy. In the long term, I would like to see the tolls scrapped. Those of us who use the bridges have already paid more than £700m in tolls.

"It only cost £300m to build the second crossing.”

The new tolls will be active from January 1.

The prices will be: car £5.40; small goods vehicles less than 3,500kg £10.90; HGV more than 3,500kg £16.30

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