Assurances that the UK Government will not use the Severn crossings to generate profit once they return to public ownership have been hailed as “hugely significant”.
Monmouth MP David Davies said a pledge by Transport Minister Andrew Jones not to run both bridges as a “cash system” to fund schemes elsewhere after the concession agreement with private company Severn River Crossings Plc ends – now expected as soon as October 2017 – could lead to further toll reductions.
The minister was pressed about the future of the tolls when he gave evidence to the Welsh Affairs Committee, which is holding an inquiry into the Severn crossings, in Westminster on Monday (4 July).
“There’s not a profit making exercise here,” said Mr Jones.
“I’m looking to make sure we have a functioning, well maintained, critical pair of crossings which are fit for the future to fulfil their economic purpose, that are operated in a way which enables the maximum free flow of vehicles, with the least inconvenience.
“They are not a cash system… to fund a scheme in Kent or a scheme somewhere else. That’s not right at all.”
Committee chairman David Davies asked: “So once all the debts have been paid off, this is a bridge that will continue to charge a toll but a toll that will cover maintenance costs and not a toll that will make profit for the government?”
Mr Jones said that was correct.
He also said there was no intention to go down the route of transferring ownership of the crossings to the Welsh Government and was adamant there was no plan to build up a sinking fund that would be used for a third Severn bridge.
However, the minister suggested that free flow technology may well be introduced so vehicles would no longer have to stop at toll booths – while incentives could be offered to encourage lorries to use the bridges at night.
“For example, you could structure a payment system that offers incentives for HGVs between, say, 11pm and 6am overnight which is what happens at the Dartford crossings,” said Mr Jones.
There could be lower tolls for greener vehicles too, he added.
It had been anticipated that the bridges would not come under UK Government control until February 2018.
But Mr Jones revealed increased traffic levels meant the bridges may be handed back into public ownership as soon as October or November 2017.
Speaking afterwards, Mr Davies said: “I have been following this issue for the last 11 years and as far as I’m aware, today is the first time I have heard a government minister admit that the Severn bridges can’t be used as a profit making venture for the Treasury.
“It’s a hugely significant step forward because, currently, the bridges generate more than £90m a year in revenue but only cost around £14m to maintain.
“That means that once the outstanding debts have been recovered - if what the Minister is saying is accurate and adhered to - we should be able to see the tolls come down by much more than is currently being offered.”
Chancellor George Osborne announced in March that tolls charges will be halved after the bridges revert to public ownership.
“We have so far gone from an offer of 20 per cent off to a reduction of 50 per cent, which is certainly welcome,” added Mr Davies.
“But there is potential to go much further and I do not intend to give up until the tolls are a fraction of what is being levied at present.”