Monmouth MP David Davies has said returning the Severn Crossings to government ownership could result in a £17 million tax-cut windfall.

The Conservative MP said a return to public ownership would mean the ‘immediate removal’ of £17m in VAT, which could reduce toll charges by a fifth to £5.36.

The Severn Bridge, and Second Severn Crossing, are due to return to public ownership in April 2018 once parent company Severn River Crossing plc, who built the structures, is repaid its debt in full.

But Mr Davies, who has written to transport secretary Patrick McLoughlin, said the ‘handover could be realised several months earlier’, and a plan would need to be in place to meet the need.

“Changes to Corporation Tax and an increase in traffic due to low fuel prices mean that the sum promised to SRC will inevitably be paid months earlier than expected.

“I believe it could happen as soon as October or November 2017, so we have two years to put a proper plan in place,” he said.

Figures obtained by Mr Davies show SRC collected nearly £92m in 2014, with just a tenth of that figure spent on maintenance. The £17m VAT bill would disappear under public ownership due to EU rules, figures Mr Davies said ‘prove there is scope for a huge cut in tolls’.