VAT could raise tolls to nearly �5

The House of Lords was told in June that motorists faced an increase in tolls on crossings like the Severn Bridges after a landmark European judgement.

The Labour peer, Lord Islwyn of Casnewydd, urged ministers to fight any attempt to impose VAT on toll charges.

The prospect of VAT on Severn crossing tolls has previously been dismissed as a euro-myth.

But the EU's advocate general argued that Britain is in breach of its Treaty obligations by failing to impose VAT.

'Make a stand'

Lord Islwyn had argued that Britain should be allowed to decide for itself whether to add VAT to tolls.

And he predicted widespread protests if tolls are suddenly increased.

He pointed out that people who worked across the Bristol Channel would be at a disadvantage.

"I would have thought it was time to make a stand," he said.

"We will have to ask ourselves whether we are to be governed by a democratic Parliamentary system or by these faceless bureaucrats in Brussels.

"I've no hesitation on which side I would come down on," he added.