HC Deb 07 January 2003 vol 397 cc167-8W
Mr. Chope

To ask the Chancellor of the Exchequer if he will list the privately operated tolls which will be subject to VAT from 1st February. [89116]

John Healey

The Government is aware of 10 bridges operated by non-public bodies where the tolls will become subject to VAT from 1 February if the bodies are liable to register for VAT. These are Aldwark Bridge, Clifton Suspension Bridge, Dunham Bridge, Rixton and Warburton Bridge, Severn River Crossing, Skye Bridge, Swinford Bridge, Shrewsbury (Kingsland) Bridge, Whitchurch Bridge and Whitney on Wye Bridge.

As I made clear in my written statement of 19 December, the Government's intention remains that tolls will not increase on account of VAT being levied from 1 February. The Department for Transport and the Scottish Executive are consulting with toll operators on the details, and suitable arrangements will be in place by 1 February.

In addition to these, tolls levied by private landowners to cross their land will also become subject to VAT. There is no central record maintained of this type of toll.

Mr. Chope

To ask Mr Chancellor of the Exchequer pursuant to the Written Ministerial statement of 19 December, on VAT on privately operated toll roads, how he intends to ensure that tolls will not increase on account of VAT being levied from 1st February 2003. [89398]

John Healey

As I made clear in my statement, the Government's intention remains that tolls will not increase on account of VAT being levied from 1 February. The Department for Transport and the Scottish Executive are consulting with toll operators on the details, and suitable arrangements will be in place by 1 February.

Mr. Chope

To ask Mr Chancellor of the Exchequer if he will define the expression 'privately operated' in relation to toll roads in his Written Ministerial Statement of 19th December. [89399]

John Healey

The European Court of Justice has ruled that statutory tolls levied by central and local government bodies are outside the scope of VAT, because these bodies do not engage in business activities when performing their statutory functions. The court has also ruled that tolls levied by other bodies, or levied in other circumstances, must be made subject to VAT. The term "privately operated" is a generic term, which refers to this second category of tolls.

Mr. Chope

To ask Mr Chancellor of the Exchequer pursuant to his Written Ministerial Statement of 19 December, on VAT on privately operated tolls, if the Central London road user charge will bear VAT; and if he will make a statement. [89400]

John Healey

Provided that the Central London road user charging scheme is operated entirely by a public body and under public statute, the charges will not be liable to VAT.