THE ECONOMIC IMPACT OF TOLLS ON THE SEVERN CROSSINGS

Descriptions

The Economic Impact of Tolls on the Severn CrossingsThe Welsh Assembly Government established an Economic Research Advisory Panel (the Panel) in 2002, to provide independent advice to the First Minister of Wales on an Economic Research Programme. Details can be found at: http://new.wales.gov.uk/about/aboutresearch/econoresearch/advisorypanel/?skip=1&lang=en The Severn Crossings provide an important link in Wales’ transport infrastructure. The responsibility for the Severn Crossings and the levying of tolls lie with the UK Government with the tolling regime for the Severn Crossings set out in the Severn Bridges Act 1992. The concession agreement for the Severn Crossings will end when the defined sum of just under £996 million (in 1989 prices) has been collected, subject to a maximum 30 year period. Current expectation is that this funding requirement will be met in 2017, at which point the operation of the Severn Crossings will be handed over to the UK Government.Given the strategic transport role of the M4 corridor, and the Severn Crossings, for south Wales, the potential impact of the Severn Crossings tolls on the Welsh economy has attracted much attention. To date, there exists very limited economic evidence upon which to fully understand the effects and distributional consequences of the Severn Crossings, the current tolling regime and of any economic and transport impacts that might result through either potential changes to the tolls or following the conclusion of the concession agreement. This research study aims to conduct a detailed and rigorous economic assessment of the impact of the Severn Crossing tolls on the Welsh economy, examining the nature and magnitudes of the effects. The geographical focus of the study should be on the economic effects relating to Wales, particularly South Wales, though drawing suitable comparisons with the economic effects and development patterns of the greater Bristol area and relevant surrounding areas of Southern England.The study requires that the full range of potential economic and transport effects arising from the Severn Crossings tolls on the Welsh economy be examined. A detailed baseline assessment of the economic impact of the current tolling regime on the Severn Crossings, and an investigation of the potential economic, transport, and financial impacts of any changes to the tolling regime is required. Use of relevant existing economic evidence and statistical information will need to be considered and, where appropriate, new data collected in order to generate the required empirical evidence. Other on-going and completed research on the Severn Crossings tolls will need to be considered.The Welsh Assembly Government, on behalf of the Welsh Ministers, will be conducting this If the process is being let using the e-procurement process the following wording should be added (If not this and all references to bravo solutions should be deleted): procurement exercise through the etenderwales portal https://etenderwales.bravosolution.co.uk. Tender documents and other information must be downloaded from and returned through this portal. If you require any further assistance the BravoSolution helpdesk is available on:Email: help@bravosolution.co.uk Phone: 0800 3684850 / Fax: 020 7060 0480Full information in accessing the portal is found in Section VI.3.