The announcement that VAT on the Severn Crossings will be abolished once they return to public ownership in 2018 has been welcomed by Monmouth MP David Davies.
Chancellor George Osborne confirmed in his Budget speech that small goods vehicles and small buses will pay £5.40 – the same amount as cars – down from £13.10.
Heavy goods vehicles and buses will pay £16.30 instead of £19.60.
Mr Davies said the move was thanks to the Welsh Affairs Committee, which he chairs, “repeatedly calling” for tolls to be reduced.
The committee published a report in 2010 assessing the impact the Severn Crossings toll has on the economy of south Wales and beyond.
“This is exactly what we’ve been calling for,” said Mr Davies.
“I am delighted with the news that both the old Severn Bridge and the Second Severn Crossing will revert to public ownership, meaning VAT will no longer be charged to motorists post-2018.
“I also welcome the announcement that small vans and buses will not have to pay a higher levy than cars.
“20 per cent is certainly a good start. However, more needs to be done to further reduce the tolls, which remain a barrier to business and tourism.”
Mr Davies said it would be possible to maintain the crossings with tolls set at just one third of the current level.