As a result of a significant financial shortfall caused by the impact of higher than expected levels of inflation and interest rates, extreme rises in energy and fuel costs, and ongoing reductions in traffic levels on the Tamar Bridge and Torpoint Ferries, Members of the Tamar Bridge and Torpoint Ferry Joint Committee have agreed to carry out initial public consultation on all proposals to address the undertaking’s current financial position. This will enable the views of members of the public to be fully taken into account before any decision is made on a preferred option.
Many members at today’s meeting expressed their frustration at previous decisions of the Government not to provide financial support for the crossings and vowed to continue to fight for fair funding. They are calling on local MP’s Sheryll Murray, Johnny Mercer and Luke Pollard to support them and the parent authorities in pressing the Government to provide funding to help address the predicted shortfall in funding by 2025 and reduce the need for further increases in tolls.
No decision has been made on increasing tolls. We want to hear the views of the people who use the crossings and local residents and businesses on the various options before we make a recommendation to the parent authorities later this year. We also want to give our MPs one last chance to support us in making our case to the Government for financial support.
Over the past few weeks we have received the Local Partnerships report, an independent review of the operations and structure of Tamar Crossings; detailed information on traffic levels and today’s report setting out the current financial position of the organisation. All this information is available to the public.
Only when we have heard from all the MPs and reviewed the results of the consultation will we make a decision.
Between them the Tamar Bridge and Torpoint Ferry carry around 18 million vehicles a year (16 million on the bridge and 2 million on the ferries), with the two crossings recognised as uniquely important to the economy of the region. The Tamar Crossings are almost entirely funded by toll income, as stated in legislation, which is used to operate, maintain and improve the bridge and ferries. 60% of drivers using the crossings currently enjoy 50% discount and more convenience by pre-payment using the organisation’s TamarTag service.
The previous increase in tolls was designed to rebuild and maintain a reserve of up to £3.3m, avoiding the need for a further increase in tolls in the medium term. Unfortunately the combination of significant increases in the cost of living and interest rates and a reduction in income due to the lower than expected levels of traffic means that the organisation’s reserves are forecast to be completely depleted during 2024/ 2025, with Tamar Crossings facing a significant and growing financial deficit unless there is intervention to increase income.
The crossings over the Tamar are crucial to local residents and businesses, as well as to people visiting Plymouth, Devon and Cornwall. We recognise that many local people have no choice but to use the crossings, particularly to access health care and education services. Even with the tag discount, the cost of living crisis means that some are already struggling and would not be able to cope with any further increases. However we are facing unprecedented financial challenges and need to ensure that we have funding to continue to deliver these services.
We have already written to the local MPs and are awaiting all the responses to come in so we can approach Ministers together with one voice from the South West. However, in the meantime, as our only source of revenue is currently toll charges, we need to go ahead with local consultation to seek the views of people using the crossings on the options which are before us.
Members of the public will be asked for their views on five options:
A. do nothing
B. increase of approx 15% on both cash and tag tolls (Car tolls to £3.00 cash/£1.50 tag)
C. hybrid increase – 23% on cash tolls with a reduced discount of 40% on tag tolls (£3.00 cash/£1.80 tag)
D. approximately 23% increase on both cash and tag tolls (£3.20 cash/£1.60 tag)
E. approximately 23% increase on both cash and toll tolls, with a supplementary £1 increase for ferry crossings (£3.20 cash/£1.60 tag with £1/50p ferry supplement
The consultation will take place within the next few weeks, with the results reviewed by members of the Joint Committee who will then decide on whether to go ahead with any changes.