THE TAX ON GOING TO WORK

Cross the Bridge(s) and pay the tax on jobs! 

The Severn bridge tolls are a tax on going to work and are a tax on doing business and its time to bring an end to the tax on going to work. Even though the private toll franchise may come to an end in 2018 the tolls may yet continue to be collected until 2027 by the Westminster Government and the Department for Transport.

A Plaid Cymru freedom of information request revealed that while the Severn crossings are likely to finally return to public ownership by 2018, the Westminster Government will still have the right to recover its costs. This right lasts until 2027. With the present toll rates it would take one to two years for the Westminster Government to recoup its costs but at the moment it is deliberately keeping its intentions hidden.

The Westminster Government needs to come clean on its plans after 2018 and whether it intends to keep charging up to 2027 and beyond. With control of the tolls devolve a Plaid Cymru Government would reduce the tolls to around £2 (under today’s prices) to cover maintenance, staff costs and contingencies. Eliminating the tolls altogether would be kept under review and would depend on costs.

The tolls could form a useful revenue stream for Welsh Governments, but the priority of Plaid Cymru is to cut the tolls. By the time the two Severn Bridges come back into public ownership in 2018, Severn River Crossings plc will have milked its cash cow to the tune of about £ 1.029 billion pounds. The scale of the profits has been helped by the fact that routine maintenance of the old (M48) Severn Bridge (which is periodically closed at weekends) has continued to be funded by the Department for Transport, from the public coffers.

We simply cannot rely on the Department for Transport to act to further our interests at all. It is important that preparations for the end of the privately administered toll franchise begin as soon as possible. The Severn Bridges (and tolls) might well be out or sight and out of mind to most Westminster based ministers but they loom very large in the imagination (and the wallets) of long suffering commuters, businesses and visitors here in the south as they are literally a tax on going to work and on doing business.

The tolls to cross the Severn Bridge and Second Severn Crossing into Wales have risen yet again. From 1 January (2015), cars have to pay £6.50 - up from the current £6.40 - small goods vehicles and small buses received a 30p rise to £13.10, and heavy goods vehicles and buses faced a rise up to £19.60, from £19.20. The current owners of the Severn Toll bridges are Severn River Crossing PLC who are able to increase the cost every January in line with the Retail Price Index.

In a response to a Freedom of Information Act by Plaid, the UK Highways Agency, said:

“Severn River Crossing (SRC) is entitled to collect a defined sum from the tolls (£1,028.9m in July 1989 prices) and the current forecasts indicate that this sum will be recouped in 2018. 

“After this time, the crossings will be handed back to the Government. No decisions have been made regarding the future of the Severn bridges.  From this point onwards, government has the right to recoup its own costs from the construction, maintenance and management of the bridge until 2027.  This would be for costs that fall outside of the scope of the current concession for example costs incurred for cable corrosion work. 

“Based on a continuation of current arrangements it is expected to take 1-2 years to recover this money, however, the exact nature of that regime has yet to be determined.”

The Highways Agency listed spending on work on main cable corrosion on the first Severn crossing as  £5,272,000 between 2010-11 and 2014-15. Then in the following three financial years the project spending costs will be another £4,767,000 from next April through to 2017-18.

Back in 2012, Plaid Cymru submitted a Freedom of Information request to the Department of Transport seeking details of any correspondence between it and the Welsh Government on the level of tolls since May 2011, the last Assembly elections. In its response the Department of Transport merely listed emails between the Highways Agency and the Welsh Government advising of planned increases in tolls for 2012 and 2013. An FOI request revealed that there was no other correspondence between the Welsh Government and the Westminster Government. 

In 2012 a report for the Welsh government suggested that abolishing the tolls would increase traffic by an estimated 12% - equivalent to about 11,000 vehicles a day – and that businesses and commuters forked out around £ 80 million pounds a year crossing the Severn bridges.

Back in October 2010, Professor Peter Midmore produced an independent economic study of the Severn Bridge tolls, which recommended that the revenues should stay in Wales, once the crossings revert to public hands. This study of 122 businesses was commissioned by the Federation of Small Businesses revealed that the tolls had a negative impact on 30% of firms in South Wales, this compared with 18% in the Greater Bristol area.

While noting that the economic impact was not substantial for most, the 2010 study found that transport; construction and tourism-related companies reliant on regular crossings suffered increased costs and reduced competitiveness. The 2010 study found that Welsh businesses were unfairly penalised by the tolls and concluded that the money should be shared with the Assembly Government and used to improve Wales’ roads and public transport.

Studies and reports aside we continue to have little choice but to pay what is effectively for many people simply a tax on going to work, doing business or simply visiting Wales.

STILL GETTING FLEECED!

The toll to cross the Severn Bridge and Second Severn Crossing into Wales will increase once again from the 1st January, with cars paying £6.50 - up from the current £6.40 - while small goods vehicles and small buses facing a 30p rise to £13.10, and heavy goods vehicles and buses having to pay £19.60, up from £19.20. 

Severn Bridge tolls since 1976

 This new increase makes the toll one of the most expensive per kilometre and hinders economic growth. Back in 1966, it cost you 12p to cross the bridge, which would be around £2 pound in today’s money – something that clearly suggests that the toll concession holders are fleecing us for as much as they can get before the franchise expires.

Back on January 1^st 2014, the cost of crossing into Wales by car increased to £6.40 - a rise of 20p - small goods vehicles pay £12.80 (a 40p increase) and HGVs £19.20 (a 60p increase). The Severn Bridge operators rolled out the same old tired excuses for their greed saying that the tolls were agreed by a parliamentary order and in line with the Retail Price Index (RPI), etc, etc.

When it comes to the Severn Bridge tolls, one often-ignored fact is that the tolls on the Humber Bridge are subsidized by Westminster. When last in office at Westminster, the party formerly known as New Labour chose to quietly (and regularly) subsidise the Humber Bridge tolls, yet made no move what so ever towards doing anything about dealing with the tax on jobs, businesses and commuters which are passed off as the Severn bridge tolls – and our local Labour elected representatives pretty much maintained their silence.  

This may explain why our local Labour MP’s do little save trotting out the same old news releases bemoaning the failure of the Government (when in opposition) to do anything about the tolls. The Humber Bridge subsidy has been continued by the Con Dem Coalition Government, who have driven the post Thatcherite ‘free market’ ideology into wholly new areas, yet show no inclination to curb the Humber Bridge state subsidy or offer to help Welsh commuters and businesses out with a simular subsidy.

At some point in 2018 ownership of the two Severn Bridges will revert back to the Westminster Government ‘s Department for Transport, once the take from the tolls reach passes the magic figure of £996 million pounds (that is at 1989 prices). The Labour in Wales Welsh government wants to take control of the tolls when the Severn Crossings return to public ownership and would look to reduce them although it believes abolishing them would leave too great a hole in the budget.

Plaid wants the transfer of powers (to Wales) so that tolls on the bridges can be reduced, something that could have a considerable impact on businesses and the economy. With control over the bridges devolved, Plaid would cut the tolls to £2 to cover maintenance costs. Maintenance costs are some £15 million per year, but motorists and vehicles using the crossings currently generate £72 million pounds per year. While the tolls would form a useful revenue stream for Welsh Governments, Plaid’s priority is to cut the tolls.

A consultants' report (for the Welsh Government) suggested that the abolition of bridge tolls could boost the economic output in Wales by £ 107 Million pounds. By the time the two Severn Bridges come back into public ownership in 2018, it has been estimated that this cash cow may have been milked to the tune of about £ 1.029 billion pounds. What adds regular insult to regular financial injury is the fact that the old (M48) Severn Bridge continues to be periodical closed at weekends for routine maintenance, which are funded by the Department for Transport, from the public purse.

Back in October 2010, Professor Peter Midmore's independent economic study of the Severn Bridge tolls recommended that the revenues from the tolls should stay in Wales, once the crossings revert to public hands. The study of 122 businesses commissioned by the Federation of Small Businesses revealed that the tolls had a negative impact on 30% of firms in South Wales, this compared with 18% in the Greater Bristol area.

The 2010 study found that transport; construction and tourism-related companies reliant on regular crossings suffered increased costs and reduced competitiveness. The study also found that Welsh businesses were unfairly penalised by the tolls and concluded that the money should be shared with the Assembly Government and used to improve Wales’ roads and public transport.

There appears to be a general political consensus that something must be done about reducing the Severn bridge tolls – which is nice – but not particularly helpful to motorists. The ominous silence from the Department for Transport on the eventual ownership of the bridge and the potential fate of the tolls is also not particularly helpful and should be a real cause for concern. 

What worries me is that the Department of Transport (and their Westminster based masters) could find the income from the Severn bridge tolls too useful to let go. The ownership of the Severn bridges should be transferred to the National Assembly in 2018, which means that a decision needs to be made now and preparations for the transfer begun  - what we in Wales don’t need is silence from the Department for Transport. 

AS DAY FOLLOWS NIGHT…

The toll to cross the Severn Bridge and Second Severn Crossing into Wales will increase again next year. From the 1st January, cars will have to pay £6.50 - up from the current £6.40 - while small goods vehicles and small buses face a 30p rise to £13.10, and heavy goods vehicles and buses will have to pay £19.60, up from £19.20. Interestingly enough back in 1966, it cost you 12p to cross the bridge, which would be around £2 pound in today’s money.

Back on January 1^st 2014, the cost of crossing into Wales by car increased to £6.40 - a rise of 20p - small goods vehicles pay £12.80 (a 40p increase) and HGVs £19.20 (a 60p increase). The Severn Bridge operators rolled out the same old tired excuses for their greed saying that the tolls were agreed by a parliamentary order and in line with the Retail Price Index (RPI), etc, etc.

Oddly enough, when it comes to the Severn Bridge tolls, one often-ignored fact is that the tolls on the Humber Bridge are subsidized by Westminster. When last in office at Westminster, the party formerly known as New Labour chose to quietly (and regularly) subsidise the Humber Bridge tolls, yet made no move what so ever towards doing anything about dealing with the tax on jobs, businesses and commuters which are passed off as the Severn bridge tolls – and our local Labour elected representatives pretty much maintained their silence.  

This may explain why our local Labour MP’s do little save trotting out the same old news releases bemoaning the failure of the Government (when in opposition) to do anything about the tolls. The Humber Bridge subsidy has been continued by the Con Dem Coalition Government, who have driven the post Thatcherite ‘free market’ ideology into wholly new areas, yet show no inclination to curb the Humber Bridge state subsidy or offer to help Welsh commuters and businesses out with a simular subsidy.

At some point in 2018 ownership of the two Severn Bridges will revert back to the Westminster Government ‘s Department for Transport, once the take from the tolls reach passes the magic figure of £996 million pounds (that is at 1989 prices). The Labour in Wales Welsh government wants to take control of the tolls when the Severn Crossings return to public ownership and would look to reduce them although it believes abolishing them would leave too great a hole in the budget.

Plaid has called for the transfer of powers (to Wales) so that tolls on the bridges can be reduced, something that could have a considerable impact on businesses and the economy. With control over the bridges devolved, Plaid would cut the tolls to £2 to cover maintenance costs. Maintenance costs are some £15 million per year, but motorists and vehicles using the crossings currently generate £72 million pounds per year. While the tolls would form a useful revenue stream for Welsh Governments, Plaid’s priority is to cut the tolls.

A consultants' report (for the Welsh Government) suggested that the abolition of bridge tolls could boost the economic output in Wales by £ 107 Million pounds. By the time the two Severn Bridges come back into public ownership in 2018, it has been estimated that this cash cow may have been milked to the tune of about £ 1.029 billion pounds. What adds regular insult to regular financial injury is the fact that the old (M48) Severn Bridge continues to be periodical closed at weekends for routine maintenance, which are funded by the Department for Transport, from the public purse.

Back in October 2010, Professor Peter Midmore's independent economic study of the Severn Bridge tolls recommended that the revenues from the tolls should stay in Wales, once the crossings revert to public hands. The study of 122 businesses commissioned by the Federation of Small Businesses revealed that the tolls had a negative impact on 30% of firms in South Wales, this compared with 18% in the Greater Bristol area.

The 2010 study found that transport; construction and tourism-related companies reliant on regular crossings suffered increased costs and reduced competitiveness. The study also found that Welsh businesses were unfairly penalised by the tolls and concluded that the money should be shared with the Assembly Government and used to improve Wales’ roads and public transport.

There appears to be a general political consensus that something must be done about reducing the Severn bridge tolls – which is nice – but not particularly helpful to motorists. The ominous silence from the Department for Transport on the eventual ownership of the bridge and the potential fate of the tolls is also not particularly helpful and should be a real cause for concern. 

What concerns me is the possibility that the Department of Transport (and their Westminster based masters) may find the income from the Severn bridge tolls too useful to let go. The ownership of the Severn bridges should be transferred to the National Assembly in 2018, which means that a decision needs to be made now and preparations for the transfer begun  - what we in Wales don’t need is silence from the Department for Transport. 

NICE BUT...

Personally I have no problem with the Severn bridges being nationalised, it just makes more sense for them to be run by the National Assembly rather than Westminster and the Department for Transport. With that in mind the preparations to transfer of control of the Severn Bridges to the National Assembly in 2018 need to start now, as if they return to Westminster (and the Department for Transport) the tolls will never be reduced.

VAT or no VAT it is still a tax on jobs and businesses

The truth is whatever Westminster based party forms the next Westminster Governments, they and the Department for Transport they simply cannot be trusted to put the interests of commuters and businesses first, they will never put Wales first. For most Westminster ministers and most Welsh MPs the Severn Bridges and tolls may be out or sight and out of mind, but they loom large in the imagination and the wallets of long suffering commuters, businesses and visitors.

Now while there appears to be a general political consensus that something must be done about the Severn bridge tolls, which is nice, but not particularly helpful. The mixed messages from the Department for Transport on the eventual ownership of the bridge and the potential fate of the tolls are not helpful. Local Labour MP’s may now be jumping up and down in relation to the Severn bridge tolls, but, this begs the question just exactly where were they between 1997 and 2010 when their party was in government.

There is talk of when the bridges come back in public ownership (in 2018) that the tolls may be maintained for an additional two years to recoup the Westminster government’s expenditure on maintenance. What may make this sting some more is that VAT will probably be dropped, so those organisations which have been recovering their VAT from bridge tolls will have to pay in full?

Now Plaid Cymru has called for the transfer of powers to Wales so that the tolls on the bridges can be reduced, something that could have a considerable impact on businesses and the economy. With control over the bridges devolved, Plaid Cymru would cut the tolls to £2 to cover maintenance costs. The costs for upkeep are £15 million per year, but motorists and vehicles using the crossings currently generate £72 million pounds per year.

While the tolls would form a useful revenue stream for Welsh Governments, the priority of Plaid Cymru is to cut the tolls. By the time the two Severn Bridges come back into public ownership in 2018, Severn River Crossings plc will have milked its cash cow to the tune of about £ 1.029 billion pounds. To add insult to injury the old (M48) Severn Bridge is periodically closed at weekends for routine maintenance, which is funded by the Department for Transport, from public coffers.

Back in 2012, Plaid Cymru submitted a Freedom of Information request to the Department of Transport seeking details of any correspondence between it and the Welsh Government on the level of tolls since May 2011, the last Assembly elections. In its response the Department of Transport merely listed emails between the Highways Agency and the Welsh Government advising of planned increases in tolls for 2012 and 2013.

The FOI request revealed that there was no other correspondence between the Welsh Government and the Westminster Government.  In 2012 a report for the Welsh government suggested that abolishing the tolls would increase traffic by an estimated 12% - equivalent to about 11,000 vehicles a day – and that businesses and commuters forked out around £ 80 million pounds a year crossing the Severn bridges.

In October 2010, Professor Peter Midmore's independent economic study of the Severn Bridge tolls which has recommended that the revenues should stay in Wales, once the crossings revert to public hands. This study of 122 businesses was commissioned by the Federation of Small Businesses revealed that the tolls had a negative impact on 30% of firms in South Wales, this compared with 18% in the Greater Bristol area.

While noting that the economic impact was not substantial for most, the 2010 study found that transport; construction and tourism-related companies reliant on regular crossings suffered increased costs and reduced competitiveness. The 2010 study found that Welsh businesses were unfairly penalised by the tolls and concluded that the money should be shared with the Assembly Government and used to improve Wales’ roads and public transport. 

A NICE LITTLE EARNER

There appears to be a general political consensus that something must be done about reducing the Severn bridge tolls – which is nice – but not particularly helpful to motorists. Neither is the silence (ominous or not) from the Department for Transport on the eventual ownership of the bridge and the potential fate of the tolls is also not particularly helpful.

Back on January 1^st 2014, the cost of crossing into Wales by car increased to £6.40 - a rise of 20p - small goods vehicles pay £12.80 (a 40p increase) and HGVs £19.20 (a 60p increase). The Severn Bridge operators rolled out the same old tired excuses for their greed saying that the tolls were agreed by a parliamentary order and in line with the Retail Price Index (RPI), etc, etc.

A non subsidised bridge near us...

Oddly enough, when it comes to the Severn Bridge tolls, one often ignored fact is that the tolls on the Humber Bridge are subsidized by Westminster. When last in office at Westminster, Labour chose to quietly (and regularly) subsidise the Humber Bridge tolls, yet made no move what so ever towards doing anything about dealing with the tax on jobs, businesses and commuters which are passed off as the Severn bridge tolls – and our local Labour elected representatives pretty much maintained their silence.  

To a degree this may explain to some degree what our local Labour MP’s who do little beyond trotting out the same old news releases bemoaning the failure of the Government (when in opposition) to do anything about the tolls. The Humber Bridge subsidy has been continued by the Con Dem Coalition Government, who have driven the post Thatcherite ‘free market’ ideology into wholly new areas, yet show no inclination to curb the Humber Bridge state subsidy or offer to help Welsh commuters and businesses out with a simular subsidy.

At some point in 2018 ownership of the two Severn Bridges will revert back to the Westminster Government ‘s Department for Transport, once the take from the tolls reach passes the magic figure of £ 996 million pounds (that is at 1989 prices). The Labour in Wales Welsh government wants to take control of the tolls when the Severn Crossings return to public ownership and would look to reduce them although it believes abolishing them would leave too great a hole in the budget.

Plaid has called for the transfer of powers (to Wales) so that tolls on the bridges can be reduced, something that could have a considerable impact on businesses and the economy. With control over the bridges devolved, Plaid would cut the tolls to £2 to cover maintenance costs. Maintenance costs are some £15 million per year, but motorists and vehicles using the crossings currently generate £72 million pounds per year. While the tolls would form a useful revenue stream for Welsh Governments, Plaid’s priority is to cut the tolls.

A consultants' report (for the Welsh Government) suggested that the abolition of bridge tolls could boost the economic output in Wales by £ 107 Million pounds. By the time the two Severn Bridges come back into public ownership in 2018, it has been estimated that this cash cow may have been milked to the tune of about £ 1.029 billion pounds. What adds regular insult to regular financial injury is the fact that the old (M48) Severn Bridge continues to be periodical closed at weekends for routine maintenance, which are funded by the Department for Transport, from the public purse.

Back in October 2010, Professor Peter Midmore's independent economic study of the Severn Bridge tolls recommended that the revenues from the tolls should stay in Wales, once the crossings revert to public hands. The study of 122 businesses commissioned by the Federation of Small Businesses revealed that the tolls had a negative impact on 30% of firms in South Wales, this compared with 18% in the Greater Bristol area.

The study noted that the economic impact was not substantial for most, the 2010 study found that transport; construction and tourism-related companies reliant on regular crossings suffered increased costs and reduced competitiveness. The 2010 study found that Welsh businesses were unfairly penalised by the tolls and concluded that the money should be shared with the Assembly Government and used to improve Wales’ roads and public transport.

What concerns me is the possibility that the Department of Transport (and their Westminster based masters) may find the income from the Severn bridge tolls too useful to let go. The ownership of the Severn bridges should be transferred to the National Assembly in 2018, which means that a decision needs to be made now and preparations for the transfer begun  - what we in Wales don’t need is silence from the Department for Transport. 

MORE OF THE SAME...

Samuel Johnson said amongst other things that the prospect of being hanged focuses the mind wonderfully… perhaps the prospect of being hung out to dry (financially) by the big six energy companies, the supermarkets, and Severn Crossings PLC no longer registers as anything more than simple irritation. Perhaps we can become so accustomed to being fleeced that the grimly anticipated rise in Severn Bridge tolls (which kicked in on January 1^st 2014) no longer registers. The cost of crossing into Wales by car has increased to £6.40 - a rise of 20p - while small goods vehicles must now pay £12.80 (a 40p increase) and HGVs £19.20 (a 60p increase). The Severn Bridge operators roll out the same old tired excuses for their greed saying that the tolls were agreed by a parliamentary order and in line with the Retail Price Index (RPI).

Not quite a subsidised toll bridge near us...

Yet when it comes to the Severn Bridge tolls, the often ignored literal elephant in the room is the subsidy that is applied to the Humber Bridge. When last in office at Westminster, Labour chose to quietly and regularly subsidise the Humber Bridge tolls, yet, it made no move what so ever towards doing anything about dealing with the tax on jobs, businesses and commuters which are passed off as the Severn bridge tolls. This may explain to some degree what our local Labour MP’s do little beyond trotting out the same old tired press releases bemoaning the failure of the Government to do anything. Interestingly enough the Humber Bridge subsidy has been continued by the Con Dem Coalition Government, a government that has driven the post Thatcherite ‘free market’ ideology into wholly new areas, yet has shown no inclination to curb the Humber Bridge state subsidy or offer to help Welsh commuters and businesses out with a simular subsidy.

At some point in 2018 ownership of the two Severn Bridges will revert back to the Westminster Government ‘s Department for Transport, but only takings from the tolls reach £ 996 million pounds (at 1989 prices). The Labour in Wales Welsh government has said that it would like to take control of the tolls in future when the Severn Crossings return to public ownership and that it would look to reduce them although it believes abolishing them would leave too great a hole in the budget. A recent consultants' report revealed that the abolition of bridge tolls could boost the economic output in Wales by £ 107 Million pounds. By the time the two Severn Bridges come back into public ownership in 2018, it has been estimated that this cash cow may have been milked to the tune of about £ 1.029 billion pounds.

Oddly enough to add regular insult to regular injury the old (M48) Severn Bridge continues to be periodical closed at weekends for routine maintenance, which are funded by the Department for Transport, from the public purse. Plaid has called for the transfer of powers (to Wales) so that the tolls on the bridges can be reduced, something that could have a considerable impact on businesses and the economy. With control over the bridges devolved, Plaid would cut the tolls to £2 to cover maintenance costs. The costs for upkeep are £15 million per year, but motorists and vehicles using the crossings currently generate £72 million pounds per year. While the tolls would form a useful revenue stream for Welsh Governments, the priority of Plaid is to cut the tolls.

Back in October 2010, Professor Peter Midmore's independent economic study of the Severn Bridge tolls recommended that the revenues from the tolls should stay in Wales, once the crossings revert to public hands. The study of 122 businesses commissioned by the Federation of Small Businesses revealed that the tolls had a negative impact on 30% of firms in South Wales, this compared with 18% in the Greater Bristol area. It noted that the economic impact was not substantial for most, the 2010 study found that transport; construction and tourism-related companies reliant on regular crossings suffered increased costs and reduced competitiveness. The 2010 study found that Welsh businesses were unfairly penalised by the tolls and concluded that the money should be shared with the Assembly Government and used to improve Wales’ roads and public transport.

BE CAREFULL WHAT YOU WISH FOR...

So there we have it, Carwyn Jones has said that it is unfair for Welsh people to be charged to enter their own country and that the tolls on the Severn bridges would be reduced if the Welsh government takes control of them. To be honest I would have been surprised if he had said anything different. Naturally the Con Dems want to retain control, as does the Department for Transport, aside from denying the Senedd the tools to do the job, rather than snubbing the people of Wales this probably has more to do with controlling a handy revenue stream.

I question the Labour in Wales Government’s sincerity when it comes to calling for control of the Severn Bridges (and the tolls) to be transferred to Wales. I suspect that they are trying to make as much political capital as possible with their calls to the Con Dem Government in Westminster transfer the Severn Bridges to Wales; it’s easy to do this when you know that the Con Dems won’t do it. It’s a good if cynical example of a pretty inert government creating the convenient  illusion that it is ‘standing up for Wales’.

Were the Con Dem Government, as part of the implementation of the Silk Commission recommendations, to offer as part of the package the transfer of the Severn Bridges (and control of the tolls) aside from shock I would not be surprised if Labour in Wales rejected the powers offered. Such an eventuality would in my opinion be as a result of the near nuclear explosion from Labour in Westminster Welsh MPs, numerous fevered telephone conversations down the M4 from Westminster and the Labour in Wales’s not so underlying lack of belief in the devolution for Wales.

At present it costs £6.20 to take a car over the M4 and M48 bridges from England to Wales, while driving into England is free. The bridge toll for vans and minibuses is £12.40 and for lorries and coaches is £18.60. A Welsh Government report last year suggested that abolishing the tolls could increase traffic by an estimated 12% - equivalent to about 11,000 vehicles a day.  The report also revealed that businesses and commuters spend £80 million pounds a year crossing the bridges.

At the moment the M4 and M48 Severn bridges are run by a private company (Severn Crossings Plc) carrying around 80,000 vehicles a day. The concession will finally come to an end and the bridges return to the UK government when takings from the tolls reach £996 million pounds (1989 prices) at some point in 2018. While the Labour in Wales’s government in Cardiff has expressed a desire to take control when they return to public ownership in about 2018, the Con Dem Westminster government has shown no inclination to make a decision about the bridges' future management one way of another.

If the Con Dems offer nothing of value then Carwyn will have to wait for a Labour Westminster government before he can get his hands on the Severn Bridges and the tolls. He may have a long wait for both a Labour Government in Westminster and any commitment from Labour in Westminster to transfer control of the Severn Bridges to the Senedd.  When the last Labour Government was in office before the financial crash there was scant commitment to transfer any powers or assets to Wales, so why should things change after the next Westminster general election.

Not a subsidised toll bridge near us...

When in office the Labour Westminster Government quietly subsidised the Humber Bridge tolls, but, made no move towards doing anything about dealing with the tax on jobs and the tax on commuters that pass themselves off as the Severn bridge tolls. The Humber Bridge subsidy has been continued by the Con Dem Coalition Government, who also shows no inclination to transfer control of the Severn Bridges to Wales or offer to help Welsh commuters and businesses out with a simular subsidy.

The Conservatives in the Senedd have also proposed transferring the bridges to Wales, cutting the bridge tolls and using the proceeds to spend on infrastructure – which puts them out of step with their government in Westminster. So we have elected representatives from the same party in opposition to each other over an issue of importance to the Welsh people and our economy. Nothing new here, Labour in Wales was often at loggerheads with Labour in Westminster, putting party (and self) interest before the interests of Wales.

Now when it comes to transferring the Severn Bridges (and their income) to Wales, this is also not a new idea. Back in October 2010 Professor Peter Midmore produced an independent economic study of the Severn Bridge tolls which recommended that the revenues should stay in Wales, once the crossings revert to public hands. The Welsh Affairs Select Committee back in December 2010 recommended that the bridge tolls be cut once the concession ends.

Plaid has long called for control, or shared control, over the bridge to be devolved to the Welsh government and for negotiations to start immediately to ensure that the transfer is in place by 2018. The Party, committed to reducing the tolls on the Severn Bridges to under £2 per car, recognises that the high cost of the tolls impacts on commuters and businesses (especially freight and logistics) and on people visiting Wales. The bridges are of such importance that it is only fair that control, or at least shared control, over them is in the hands of the Welsh people.

BOUND TO HAPPEN SOONER OR LATER...

The Conservatives in Wales have finally joined calls for the Welsh government to be handed control over the Severn bridges, only to find that a Conservative minister in the Con Dem Coalition government is opposing any such idea. The Conservatives in the Senedd have proposed cutting the bridge tolls and using the proceeds to spend on infrastructure. So we have elected representatives from the same party in opposition to each other over an issue of importance to the Welsh people and our economy. Nothing new here, Labour in Wales was often at loggerheads with Labour in Westminster, putting party (and self) interest before the interests of Wales.

The Second Severn Bridge

Now when it comes to transferring the Severn Bridges (and their income) to Wales, this is also not a new idea. Back in October 2010 Professor Peter Midmore produced an independent economic study of the Severn Bridge tolls which recommended that the revenues should stay in Wales, once the crossings revert to public hands. The Welsh Affairs Select Committee back in December 2010 recommended that the bridge tolls be cut once the concession ends.

At the moment both of the Severn Bridges are run by a private company (Severn Crossings PLC) and the Welsh government (in a report published in November 2012) wants to take control of the Severn Bridges when they return to public ownership. The bridge concession when it ends in 2018 will have brought in some £996 million pounds (based on 1989 prices). At the moment it costs £6.20 to take a car over the M4 and M48 bridges from England to Wales, with driving into England being free. Vans and minibuses cost £12.40 and for Lorries and coaches £18.60. Businesses and commuters currently fork out around £80 million pounds a year to cross the bridges.

Yet, Westminster, no doubt with an eye on useful income stream has said that the Severn Bridges when the concession finally comes to an end won’t be transferred to Wales and also that the tolls may not get cut either. Interestingly enough, the Humber Bridge continues to receive a subsidy, but, no such luck for the Severn Bridges and their hard pressed commuters. Perhaps the party formerly known as New Labour and the current Con Dem Government in Westminster hoped that here in Wales – out of sight and out of mind (at least from a Westminster perspective) - we would not notice the ongoing subsidy.

Plaid has long called for control, or shared control, over the bridge to be devolved to the Welsh government and for negotiations to start immediately to ensure that the transfer is in place by 2018. The Party, committed to reducing the tolls on the Severn Bridges to under £2 per car, recognises that the high cost of the tolls impacts on commuters and businesses (especially freight and logistics) and on people visiting Wales. The bridges are of such importance that it is only fair that control, or at least shared control, over them is in the hands of the Welsh people.

CUT SEVERN BRIDGE TOLL TO £2

A Plaid Cymru government would begin working now to significantly reduce tolls on the Severn Bridges and to make the statement that Wales is open for business for companies from over the border, said the party’s Shadow Minister for Transport. Rhodri Glyn Thomas has called on the Welsh Government to make the case for responsibility for the bridge to be devolved so that Wales can benefit from it.

Ownership of the bridge will be passed to the Department for Transport when the private company which owns it pays back its debt, which is likely to happen in 2018.

Rhodri Glyn Thomas said that a £2 toll for using the bridge will cover maintenance costs for the bridge. Running costs for the Severn Bridge amount to £15 million a year. Currently, consumers and businesses pay in excess of £72 million every year to cross the bridge.

Party of Wales Shadow Minister for Transport, Rhodri Glyn Thomas said:

“Plaid Cymru has always said that lowering the Severn Bridge tolls would bring huge benefits for the Welsh economy. In 2011 it was our manifesto commitment to reduce the tolls and a Plaid Cymru government would be making the case for that now.

“When the private company relinquishes its ownership of the bridge in 2018, the Welsh Government needs to be ready to step in for the benefit of the people of Wales.

“People travelling home to see their families over Christmas will be charged £6 and businesses with lorries will have to may so much more, and this goes against everything the Welsh Government should be doing to improve the Welsh economy.

“Cutting the toll to cover maintenance would save millions for consumers and businesses and would cost the Welsh Government nothing. The UK Government needs to commit to giving the democratically elected Welsh Assembly control over the bridges so that Plaid Cymru’s economic policy can be implemented in the interest of the people of Wales.”

WHY DID THEY BOTHER?

The news that the Severn Bridge tolls are unlikely to drop once the vital crossings come into public ownership does not surprise me very much. The  UK transport minister Stephen Hammond stated that the government has substantial debts on the bridges that need to be repaid.  Both the Severn Bridges are run by a private company, the concession agreement is due to run it course in 2018, at which point the bridges will return to government ownership. It had been suggested that once that concession agreement ran out, the bridge tolls might have dropped to around £1.50.

Sadly this appears not to be the case, the House of Commons Welsh Affairs Select Committee, was told that there would be no drop bridge tolls when the concession ends. Even though the bridges would come back into public ownership there were apparently "substantial government debts that needs to be repaid" from building and maintaining the river crossings amounting to around several hundred million. It is enough to make you wonder after the best part of twenty five years of a private company fleecing the people of south Wales and ramping up fat profits at our expense why the bridges were ever privatised in the first place?

Back in June 2010 a Plaid Freedom of Information request revealed the significant difference between the large amounts of money raised by Severn River Crossing plc from the toll, and the relatively small amount being spent on treating the damage to the cables on the old crossing. The FOI request revealed that (since 2006) some £15 million has been spent on main cable work on the first Severn Crossing (the M48 bridge).

The Highways Agency (back in 2011) revealed that another £5.8 million's worth of maintenance will take place over the next five years.  This was despite the fact that some £225,733,000 has been collected in bridge toll revenue since 2006. Back in October 2011 I speculated on whether we were going to get saddled with major work to maintain the bridges while the toll profits were being siphoned off by the concession holding company after the bridges are finally returned to public ownership (then in 2014 or 2016) now 2018. Depressingly the answer is Yes...

BETTER LATE THAN NEVER...

News that the Conservative MP for Monmouth constituency, David Davies has come around to the idea that the Westminster Government should take control of the two Severn bridges should be warmly welcomed. Currently the original Severn Bridge and the Second Severn Crossing are maintained and operated by Severn River Crossing plc (SRC), in approximately five years SRC’s contract will come to an end. While the Westminster Government is quite content for the concession to remain in private hands, the MP for Monmouth is not.

As noted by the Western Mail (06.08.2012), a briefing paper provided to Mr Davies from the House of Commons Library reveals how a European court judgement in 2000 determined when VAT is payable on bridge tolls, when they are operated by private concessions. According to the briefing paper states, local government authorities and other bodies which are governed by public law’ may not charge VAT on ‘transactions in which they engage as public authorities, even where they collect dues, fees, contributions or payments in connection with these activities or transactions’. What this means is that if the Severn bridges were run by a state body, then long suffering motorists and businesses would not have to pay VAT at 20% to drive across them.

Back in October 2010, a study for the Welsh Affairs Select Committee at Westminster, which is looking at the impact the tolls on Wales amongst other things. Professor Peter Midmore's study found that Welsh businesses were unfairly penalised by the tolls and concluded that the money should be shared with the Assembly Government and used to improve Wales’ roads and public transport. Under the current stitch up (sorry set-up), once the cost of the Second Severn Crossing is paid off (by 2014 or 2016) the revenue stream will revert straight to Treasury coffers in Westminster.

The study of 122 businesses commissioned by the Federation of Small Businesses found that the tolls had a negative impact on 30% of firms in South Wales, compared with 18% in the Greater Bristol area. While noting that the economic impact was not substantial for most, the study found that transport; construction and tourism-related companies reliant on regular crossings suffered increased costs and reduced competitiveness.

As long as the operation of the bridge tolls remain in the hands of a private company (Severn River Crossing PLC) then commuters, businesses and visitors will continue to get regularly fleeced. The bridge tolls have become in an effective a tax on jobs, a tax on commuters, a tax on growth and tax on business in the south of Wales. When the concession comes to end in 2018 the bridges could revert to the Department for Transport in London.

Plaid has long called for control, or shared control, over the bridge to be devolved to the Welsh government and those negotiations to this end should start immediately to ensure that the transfer is in place by 2018. Plaid is committed to reducing the tolls on the Severn Bridges to under £2 per car and recognises that the high cost of the tolls is a serious matter of concern for the Welsh people because of the impact on businesses, especially freight and logistics, and on people visiting Wales. The bridges are of such importance that it is only fair that control, or at least shared control, over them is in the hands of the Welsh people.