No change in bridge tolls for Bristol commuters

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Sunday, November 30, 2008
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This is Bristol

OPERATORS of the two Severn bridges, near Bristol, have been accused of highway robbery for not passing Monday's VAT cut on to drivers.

Motorists using the Severn Bridge and Second Severn Crossing will continue to pay £5.30 if travelling by car – and another 20p on top from January 1 when the annual toll increase comes into effect.

Drivers of goods vehicles, buses and lorries will also have to carry on paying their higher rates.

Severn River Crossing (SRC), which operates both bridges, said the tolls had not changed to reflect the VAT cut because they were set by the Severn Bridges Act and were inclusive of the tax.

But those campaigning against the tolls have reacted angrily to the announcement, saying it was tantamount to highway robbery.

Mike German, leader of the Welsh Liberal Democrats, said: "Car drivers who commute every day will be facing a £25 bill on top of the hundreds of pounds people already spend to use part of the motorway network.

"If the Government lets a major international company like Severn River Crossing flaunt the VAT cut, then they will be sending a message to all businesses not to bother passing on the cut."

If the 2.5 per cent VAT reduction to 15 per cent was implemented on the tolls, it would be worth about 10p for cars, 30p for vans and 40p for lorries next year.

Mr German said he would now be writing to the Government to find out if it was legal not to pass on the cut. He has been supported by commuter Jane Robbins, who works at Bristol University and is a Chepstow town councillor.

She said: "Every penny counts and it's a real blow to now learn that the VAT cut is not being passed on to bridge users. Why are they allowed to say that they will not pass on the cut?"

Tolls are collected to cover the cost of building and repairing the Second Severn Crossing and maintaining the Severn Bridge.

Under a deal between the Government and SRC, both bridges will return to state ownership when SRC has collected about £1 billion to cover old debts, costs, inflation and an agreed profit margin.

That was originally thought to be in June 2014, but when a VAT levy of 17.5 per cent was imposed by ministers in 2003, the Treasury agreed to let the company collect tolls for about an extra two years.

Jim Clune, SRC general manager, said that was why it was not passing the cut on to drivers.

He said: "When VAT was imposed in February 2003, prices didn't increase. The toll prices became VAT inclusive and therefore the motorist didn't pay any increase."

A spokesman for the Department of Transport said although fees would not fall immediately, the VAT cut could shorten the life of the tolls or be one factor considered when the toll increases for 2010 are reviewed.

On January 1 car drivers will pay £5.50 in toll fees. The rate for small goods vehicles and small buses will be £11.10 and drivers of heavy goods vehicles and buses will have to pay £16.60.

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