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Your Questions Answered: Tamar Tag Admin Fee Proposal
On 12 January, an extraordinary council meeting brought together members of the public and the committee to discuss the latest updates from Tamar Crossings. We know not everyone could attend, so this article shares the questions asked by the public and the committee’s responses. Our goal is to be open and transparent, keeping our community informed and involved in the conversations that shape the crossings and the services we provide.
In terms of our aspirations for the crossings, we are all aligned. Not only do we want the crossings to be cheaper for locals but have a shared ambition for them to be free – especially for the residents of South East Cornwall, who have been historically disadvantaged by the charge and any increase in cost. However, this cannot happen without external funding to either support the ongoing maintenance and essential capital investment of both crossings, or through full cost recovery for the ferry and bridge.
1. How can you justify this extortionate percentage increase? We are pensioners needing numerous visits to Derriford Hospital (20 since November) & also to keep in touch with our son in Plymouth. Bought Tamar tag to save money but we may have to think again!
The Crossings are self-financing from tolls and other fees and receives no income from Parent Authorities or from Government. We are legally required to present a balanced budget each year and the delay in increasing tolls last year resulted in a significant amount of our prudent reserve being used up. Further increases in National Insurance contributions have further exacerbated the problem, which has cost the Crossings an additional £100k per year.
Following a thorough look at the budgets by the recently appointed Chief Officer, it was clear that the Tag system was no longer self-funding and that the administration fee had not increased since 2014, along with other fees and charges. Whilst the increase can be represented as a 150%, this is £1.20 a month in real terms and is 40% of a single, full-priced crossing.
If the fee is increased, and you continued to make the 10 crossings a month advised in your question, a tag will still offer you a more cost-effective method over cash payment.
2. What are your intentions to deal with all the people cancelling their accounts and having to stop at booths to pay, increasing congestion and the cost of more booths being needed to be manned?
As you know, the current TAG scheme offers a 50% discount on the cost of a crossing. Anybody using the crossings at least 2 to 3 times a month will benefit from staying on the scheme. We understand that whilst there may be some closures of accounts, we believe this will be infrequent users and do not anticipate a noticeable impact. When the TAG admin fee was introduced in 2014, there was not any noticeable operational impact.
3. Why aren’t new applicants charged a one-off set up fee (with an additional postage charge to be paid if not collecting) so that the total cost of a new set up is paid for up front by that applicant?
There are various alternatives to a monthly fee, each with benefits and drawbacks. Similar approaches to the one you suggested were considered when the Tag scheme was first set-up, and again when the monthly fee was first considered.
An upfront charge would not reflect the ongoing costs of maintaining an account, such as the £85k bank processing costs. Moreover, now that the tag scheme is well established it would present further operational difficulties in addition to managing a two-tier system.
4. Why would you authorise a £10k tick box consultation when public opposition to toll rises are already evident – what efforts are in progress to prioritise sound financial management to reduce overheads, control persistent capital project overspends, and eliminate costly capital projects which are not mandated by legislation?
Structured consultation provides the opportunity to gain feedback from all stakeholders including members of the public so that all feedback can be considered when making a decision on the tag fee. The tag fee is distinct from a toll rise as explained in the report for this meeting. The cost of the consultation is ‘up to’ £10k and we will look to keep costs to an absolute minimum.
Sound financial management is an ongoing, long-term principle within the crossings. The organisation is subject to routine financial audit and oversight and has voluntarily invited multiple, external reviews. There is no evidence of persistent capital project overspend, and all prospective capital projects must be supported by a business case that has to be approved by the Parent Authorities. Legislative requirements is just one of multiple factors within a capital scheme’s business case.
5. Can you please advise why you did not follow the applicable Regulations in the Terms and Conditions of Use of the Electronic Tamar Tags section 11.2, and publish the change being discussed to the Website at least 1 month in advance of the original meeting on 5th December 2025?
The proposal presented in December 2025 was to modify the fee from 1 April 2026, almost four months after the meeting date. At the December meeting, officers confirmed the intention to issue direct communications with users in good time prior to the anticipated implementation date.
6. When the toll increase implemented earlier this year was applied for it was projected to provide 4-year budget stability. Now, less than one year later, the forecast reserves to 28/29 have fallen by over £1.25M, to virtually nothing and another price rise is being sought. Why is this?
At the time the Committee recommended an application to increase tolls, it was forecast that an increase would come into effect on 1 November 2024. Government approval was granted some months
later and the increase was not applied until mid-May 2025 - six months later than originally forecast. That delay led to a £1.2m loss of income. Further, after the application was made, significant additional costs including the increase in employer National Insurance rate were imposed on the crossings.
Delay and additional costs not known at the time of application have had a real impact on what was at the time of Committee approval a “barely enough” increase.
7. The proposed administration fee increase appears at odds with the desire to reduce costs to locals. Can this Committee reaffirm their commitment to securing a government funded toll free crossing and advise what the intended strategy is to achieve this? Also, how the public may assist in delivery of this?
The Joint Committee and the Parent Authorities continue to work with the Peninsula Transport Board, Members of Parliament and Government to seek to secure funding for the crossings and to meaningfully explore the possibility of toll abolition.
With regards to how the public may assist: The Joint Chairs will be meeting on a regular basis with community groups as requested by any groups. We will also be meeting with the Tamar Action Group on a regular basis before each Joint Committee meeting. We recognise that the Tamar Action Group hold a considerable amount of public interest and opinion, and we need to tap into that knowledge and understanding. The only way to move towards our end goal of free tolls is to work together and we intend to follow through on this.
8. Could the Chief Officer please outline the work he has undertaken to investigate where efficiencies can be made and costs cut, as set out in item one of the Tamar 2050 programme of transformation, prior to the decision to increase the admin charge to cover its deficit?
A line-by-line review has taken place prior to budget setting, and that has identified specific cost savings in several areas including IT and communications. There is further ongoing review, notably of staff costs. It should be borne in mind that significant costs are unavoidable as they are related to appropriate maintenance of aging assets, the design specifics of bridge and ferries and the service levels offered. However, all lines of revenue expenditure are now being closely examined and a future meeting of the Joint Committee will be able to look at confirming savings and reducing expenditure – for example, there is a revenue expenditure of £50,000 in the budget for postage on the TAG scheme. This will be reconsidered and alternative plans put in place for collection and/or postage of TAGs to applicants.
9. What are the repayment timescales for the items in Appendix 2 of today’s report (Capital Programme), noting the intention to increase borrowing by more than £30M over the next 5 years?
Borrowing is normally undertaken over a period of 25 years, except for ferry refitting which is repaid over a 5 year term.
10. I would ask that at the meeting on 12th January any vote taken by committee members be recorded in order that the public know which way their elected members voted
As set out in the Tamar Bridge and Torpoint Ferry Joint Committee’s Terms of Reference, C10 (i), a recorded vote can be taken if a majority of Members of the Joint Committee present request for one to be taken.
11. When will Tamar Crossings and the Joint Committee recognise that cutting costs MUST be found and acted on before asking the tag payers to pay more?
As stated in the response to question 8, a line-by-line review has taken place prior to budget setting, and that identified specific cost savings in a number of areas including IT and communications. The earlier response also highlighted further ongoing review, notably of staff costs. The Joint Chairs will be working with the Crossings management to reconsider some budget lines with a view to removing – such as the TAG postage costs of approximately £50,000 per year.
The reality is that reducing costs and ensuring adequate income are tasks that need to be undertaken in parallel to ensure the ongoing financial viability of the Crossings.
12. If £1,166,004 is required to run an outdated Tamar Tag system would it not be more cost effective to stop spending any more money and change to ANPR as the more forward-thinking Humber Bridge are doing?
We would note that the Humber Bridge charge £1.50 each way to use the bridge and offer a smaller discount for account holders.
Nevertheless, it remains our ambition to move to Open Road Tolling, supported by ANPR. This is something we have been investigating for some time, and on 23rd January, the Joint Committee will be meeting to examine the options for Open Road Tolling. This process had been proposed to begin sooner however there had been a delay due to insufficient statistical data being available.
Whilst a decision on whether to proceed with open road tolling will be taken in the next few months, it will require external funding and take years, not months, to complete. However, we recognise the benefits of Open Road Tolling and ANPR in keeping the roads moving smoothly.
In the interim there will be a continuing requirement to support current Tamar Tag customers and to provide new customers with access to discount tolls.
The outcome of the Extraordinary meeting included the agreement that the Joint Chairs will be writing to the Members of Parliament for Plymouth Sutton and Devonport, Plymouth Moor View, South East Cornwall and North Cornwall and the Secretary of State for Transport requesting that the government introduces a Devon and Cornwall Infrastructure Revenue Grant of £499,999 per annum to support the Tamar Crossings.
A public consultation and engagement exercise will also be undertaken before any decision is made on changing the fee, during this period, the monthly admin fee will remain at 80 pence. We welcome this consultation process as an opportunity for open and meaningful dialogue with Tamar Tag users, local residents and stakeholders.
More information regarding the consultation process and how you can get involved will be shared in due course.