THE reduction of tolls on the two Severn crossings will create “excitement” amongst businesses in Gwent, according to the Secretary of State for Wales.

Ownership of the two bridges was passed back into public hands on Monday, with the UK Government removing VAT from the charges on the same day. The tolls will then be removed altogether by the end of 2018, a pledge reinforced by Alun Cairns yesterday.

“People in Gwent for many years have been calling for these tolls to be abolished I was delighted to be able to make that commitment last year,” he said.

“This is the first stage towards delivering on that promise, coming down by the equivalent of VAT creates a new excitement amongst businesses. They can now see this is really happening in practical terms.”

The minister said that businesses in Newport and Monmouthshire had responded “positively” to the initial announcement made last January, and that the removal of the tolls would lead to economic prosperity for both south Wales and south west England.

“If you are a builder or a plumber in Monmouthshire and you wanted to quote a job in Bristol, up until now the toll charge for your white van has been quite prohibiting,” he said.

“This makes it a much better opportunity in order to win that contract and grow your business in what is a new market. The tolls have acted as a symbolic and economic barrier up until now.”

The announcement has attracted some scepticism from the Welsh Government and Gwent Labour MPs, with questions asked as to why the tolls were not scrapped on the day the bridges returned to public ownership.

But Mr Cairns said that there were “practical things” that needed to be dealt with in the interim, adding: “There’s 188 staff that we’ve got to address.

“We’ve got to make infrastructure changes, and the booths have got to be removed. Put all these practical things together and it will take time, but by this time next year the toll booths will have gone.”

Within the last few months house prices in Monmouthshire have risen and the market filled with Bristol-based buyers looking to capitalise on the scrapping of the tolls.

Mr Cairns welcomed such news as it “creates so many new opportunities” but admitted politicians on both sides of the Severn will need to respond to housing provision challenges.

Nathan Reeks, owner of Nathan James estate agents in Caldicot and Magor, said: “A typical starter home in Bristol costs around £221,000 and the average over here is around £167,000 so there’s a huge gap there.”

James Durie, chief executive of the Bristol Chamber of Commerce, added: “It’s clear that there’s going to be further impetus because you can get more for your money on the Welsh side at the moment but clearly that’s going to put a strain on the Welsh side.”