TOLLS on the two Severn bridges will drop by between £1.10 and £3.30 in January, it has been announced.

Scrapping tolls on the crossings was part of the Conservative Party's manifesto ahead of June's General Election, and in July the government announced the charges would be abolished by the end of 2018.

And now it has been announced the tolls will also drop when the bridges pass back into public ownership on Monday, January 8 next year.

Charges for car drivers will drop by £1.10 from £6.70 to £5.60, small buses and vans will pay £2.20 less at £11.20, down from £13.40. And tolls for lorries and coaches will drop by £3.30 from £20 to £16.70.

This represents an average decrease of 16.5 per cent and is reportedly the first time the tolls have been decreased since they were introduced in 1966. The annual inflation increase which would normally take effect on January 1 will also not be applied.

Welsh secretary Alun Cairns is due to announce the news at a meeting of the Confederation of British Industry Wales Regional Council meeting in Newport this morning.

“For so many years, the tolls on both Severn crossings have been seen as an economic and symbolic barrier to Wales’ future prosperity," he said.

"Our decision to reduce the tolls before abolishing them altogether will cut costs for businesses, for commuters and tourists alike, helping boost jobs and trade in Wales and across the south west.

“This is yet another strong indicator that Wales is open for business and of the UK Government’s commitment to making the right decisions for Wales’ future as part of a strong United Kingdom.”

It is estimated abolishing the tolls will boost the economy of south Wales by around £100 million a year and save drivers more than £1,400 annually.

Although the UK Government announced plans earlier this year to halve the tolls, it has now said it will instead scrap them altogether.

A firm date when the tolls will be abolished is yet to be announced.