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Budget 2016: Severn bridge tolls to be halved Budget 2016: Severn bridge tolls to be halved
(35 minutes later)
Toll charges on the Severn crossings will be halved in 2018, Chancellor George Osborne has announced in his Budget.Toll charges on the Severn crossings will be halved in 2018, Chancellor George Osborne has announced in his Budget.
The current £6.60 toll for cars - already due to be cut to £5.40 - is now expected to fall to around £3.30, subject to inflation.The current £6.60 toll for cars - already due to be cut to £5.40 - is now expected to fall to around £3.30, subject to inflation.
Mr Osborne said he had listened to the concerns of Conservative MPs in Wales.Mr Osborne said he had listened to the concerns of Conservative MPs in Wales.
Tax breaks for a Port Talbot enterprise zone, in the wake of job losses at Tata Steel, were also announced.Tax breaks for a Port Talbot enterprise zone, in the wake of job losses at Tata Steel, were also announced.
Other measures include:Other measures include:
Severn bridge tolls are currently collected by a firm to pay for the construction and running costs, which are due to be repaid by 2018.Severn bridge tolls are currently collected by a firm to pay for the construction and running costs, which are due to be repaid by 2018.
The current charge is £6.60 for cars, £13.20 for vans and £19.80 for lorries and buses. The current charge - only paid by vehicles travelling from England into Wales - is £6.60 for cars, £13.20 for vans and £19.80 for lorries and buses.
They are paid for westbound journeys only, by vehicles travelling from England into Wales.
The toll booths could be removed and replaced by a system of online payments, if a UK government review recommends it.The toll booths could be removed and replaced by a system of online payments, if a UK government review recommends it.
Monmouth Conservative MP David Davies, who also chairs the Commons Welsh Affairs committee, said he was "absolutely delighted" by the chancellor's announcement. 'Step forward'
Monmouth Conservative MP David Davies said he was "absolutely delighted" by the chancellor's announcement.
"Halving the tolls is not as much as some were hoping for but it is certainly a welcome step forward," he said."Halving the tolls is not as much as some were hoping for but it is certainly a welcome step forward," he said.
The UK Department of Transport confirmed in 2014 that tolls on the Severn crossings would not be subject to VAT when they return to public ownership. Welsh Lib Dem leader Kirsty Williams said the cut was "pathetic" and called for the tolls to be scrapped.
In the 2015 pre-election budget Mr Osborne announced that, as a result, tolls would fall to £5.40 in 2018. "The Chancellor is cynically acting as if he is doing commuters a favour, but the fact is that he wants to keep this unfair tax on entering Wales," she said.
Plaid Cymru economy spokesman Rhun ap Iorwerth said his party would also aim to remove the tolls.
"The Severn bridges are of strategic importance and it is vital that they operate in a manner which helps rather than hinders Wales' economic development," he said.
In his eighth budget, Mr Osborne also said ministers would open discussions on a proposed £500m Swansea Bay City Region investment deal involving ultra-fast broadband and technology companies.
The chancellor added that a north Wales "growth deal" would be explored to ensure it was "better connected to our Northern Powerhouse" project in England.
On Tuesday, a £1.2bn Cardiff Capital Region deal was signed to pay for transport improvements and other major schemes.
Welsh Secretary Stephen Crabb said the budget "shows the scale of ambition this government has for Wales".
However, Labour's Shadow Welsh Secretary Nia Griffith said it was "not a budget that had the interests of Wales at its heart".
"George Osborne ducked the big challenges that our economy faces and instead announced that ordinary people in Wales will face yet more cuts," she said.
Jane Hutt, the Welsh Government's finance minister, said the extra funding for Wales "does not reverse six years of austerity".