HC Deb 28 January 2003 vol 398 cc726-7W
Mr. Chope

To ask the Secretary of State for Transport what his estimate is of the annual cost to his Department of reimbursing VAT to private operators of tolls on the basis being consulted upon at present. [93350]

Mr. Jamieson

[holding answer 27 January 2003]Current estimates are that the annual reimbursement will range from about £250,000 to £350,000.

Mr. Chope

To ask the Secretary of State for Transport what arrangements will be in place on 1 February to ensure that privately operated tolls do not increase by reason of the incidence of a VAT liability. [93351]

Mr. Jamieson

[holding answer 27 January 2003]My Department is currently consulting with owners of privately operated statutory tolled undertakings on a reimbursement scheme, which will allow qualifying operators to recover VAT included in tolls. The scheme will be in place before any payment under it will need to be made.

The concession agreement at the Severn crossings has been renegotiated to eliminate the need to increase tolls because of the introduction of VAT.