Oral Answers to Questions

Kevin Brennan Excerpts

Wednesday 26th March 2014 Commons Chamber

The Secretary of State was asked—

[Kevin Brennan (Cardiff West) (Lab)]

1. What discussions he has had with the Chancellor of the Exchequer on removing VAT from the Severn bridge tolls.

[The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)]

My hon. Friend the Secretary of State has regular discussions with the Chancellor of the Exchequer. Once the Severn crossings revert to public ownership at the end of the concession, which is anticipated to be in 2018, VAT will no longer be payable on the tolls.

[Kevin Brennan]

Will the Minister confirm that in their discussions with the Chancellor of the Exchequer, he and the Welsh Secretary have firmly taken this matter into account and that, should there be a continuation of this Administration, they are committed to removing this VAT, which is basically a tax on the south Wales economy?

[Stephen Crabb]

We in the Wales Office are very mindful of the concerns of businesses in south Wales, in particular, about the levels of tolls. No decisions have yet been made on what the tolling regime will look like at the end of the concession period after 2018, but we are hearing representations from Welsh business. As the Under-Secretary of State for Transport, my hon. Friend the Member for Scarborough and Whitby (Mr Goodwill), confirmed in a recent Westminster Hall debate, at the end of the concession period, VAT is no longer to be levied on the tolls.