Severn Crossings: Tolls

Baroness Randerson Excerpts

Monday 14th March 2016 Lords Chamber

[Lord Ahmad of Wimbledon]

This is not a tax on Wales. As the noble Lord is well aware, it goes towards the running and maintenance of the bridge. As I have already indicated, at the end of the concessionary period the Government will review their position to ensure that, as the noble Lord rightly points out, this is a gateway to Wales. My right honourable friend the Chancellor indicated at last year’s Budget that, at the end of the concessionary period, for example, VAT will no longer apply and vans helping small and medium-sized enterprises will be charged the same toll as cars. That is an indication of the Government’s belief in encouraging the gateway to Wales.

[Baroness Randerson (LD)]

My Lords, Owens Logistics is a distribution business and a major employer in Llanelli. It spends £380,000 a year on tolls at £20 a time just for crossing the Severn Bridge. Can the Minister tell us what message this sends to similar businesses looking to do business in Wales?

[Lord Ahmad of Wimbledon]

My Lords, I have just said—I am sure that the noble Baroness heard my previous answer—that the Government are looking to assist small and medium-sized enterprises in that regard. When the concessionary period comes to end, we will review the tolling procedure and will work hand in glove with the Welsh Government to ensure that an effective tolling regime applies on the bridge. However, I remind noble Lords that, even at the end of the concessionary period, £63 million will still be owing to the UK taxpayer, and it is therefore right that we look to ensure that we recover that cost.