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Saturday, 1 February, 2003, 16:04 GMT
Bridge VAT deal for hauliers begins
Severn Bridge tolls
Tolls have gone up on the Severn Bridge and Second Severn Crossing
Car drivers using the Severn crossings are to see tolls frozen from 1 February.

The deal means there will be no increases on the current �4.50 charge and for business users, it will be possible to claim back VAT on the toll charges.

Severn Bridge
The cost of using the Severn Bridge has risen

The decision - which could see HGV drivers recover �2 in VAT from the �13.50 they currently pay - was recently announced by the UK Government.

On Saturday, all privately-run toll roads and bridges in the UK became subject to 17.5% VAT.

But the government announced the VAT ruling - forced through by the European Court of Justice - would not hit UK motorists.

There is evidence that the toll affects the behaviour of companies in terms of where they locate

Paul Watters, Automobile Association

The deal on VAT recovery on toll charges will see HGV hauliers being able to claim back �2 per journey while LGV drivers can now reclaim �1.34.

Toll charges on the Severn Bridge and Second Severn Crossing rose on 1 January at the same time as fuel prices were increased, pushing up the cost of motoring.

Severn River Crossing (SRC) increases its charges annually in line with the Severn Bridges Act 1992.

Following the January increases, the AA's head of transport Paul Watters questioned whether the level of toll charges was fair.

"With the rise in petrol prices, it is difficult for people like road hauliers to use the Severn Crossings.

"There is evidence that the toll affects the behaviour of companies in terms of where they locate and there is also evidence of HGV drivers using different routes to avoid the toll."


More from south east Wales
See also:

31 Dec 02 | Business
02 May 02 | UK
12 Sep 00 | Wales
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