Severn Bridges tolls firm makes £38.8m profit

THE firm which operates the two Severn bridges has announced a steep rise in profits of nearly £10m.

For the financial year to 31 December, 2015, Severn River Crossing plc increased profits from £29.4m a year earlier to £38.8m.

The company said its improved financial position was largely due to an increase in the number of vehicles using both bridges.

It also reported a rise in turnover from £91m to £98m.

The cost of using the bridges for cars is £6.60 and for HGVs and coaches £19.80. For motorbikes it is free.

In his March Budget Chancellor George Osborne announced that the charges will be cut by 50% from 2018.

Car journeys increased by 5.8%, light goods vehicle trips rising by 7.7% and heavy goods vehicle travel up by 3%.

During the period, the company used cash generated by the business, together with an £80m bank loan, to repay a £144m outstanding balance of a government subordinated loan.

Despite the pressure to reduce the cost of using the crossings the owners of the Severn River Crossing company have made it clear tolls will continue to rise in line with inflation.

In the latest accounts Severn Crossing plc said: “The directors anticipate that traffic growth will continue in 2016 and subsequent years and with index-linked toll prices, toll revenues are expected to increase.

Shadow Welsh Secretary Nia Griffith has called on the UK Government to end the tolls altogether.

She said: “The 50% discount includes the 20% of VAT, which disappears anyway when the bridge reverts to public ownership, and of course businesses reclaim VAT.

“So instead of leaving businesses still paying thousands of pounds a year, why will not the Government do the right thing and scrap these tolls altogether?”

Secretary of State for Wales, Alun Cairns said on calls to scrap tolls: “This is a very different call, a very convenient call, I would say as well, before an election [Welsh Assembly], from the party opposite in that they have long called for the devolution of the tolls.

“We were fearful that as soon as the tolls are devolved, if that was ever agreed, that we would get to a position where they would be used as a cash cow in order to support the income of the Welsh Government.”