The Scottish Government is reviewing an increase in the Aggregates Levy. As this document sets out:
The UK Aggregates Levy was introduced in 2002 with the dual aims of reducing the negative environmental impacts of quarrying and increasing the recycling rate of construction materials, by reducing the rate of primary material extraction. The scope of the UK levy includes all sand, gravel and rock that has either been dug from the ground, dredged from the sea in UK waters or imported into the country. The current rate of the levy is £2 per tonne of aggregates.
The levy was initially intended to rise in line with inflation, but after lobbying by the industry has been held at £2 per tonne since 2010. Scotland is now exploring a number of future options:
Modelling of illustrative policy options for the Scottish Aggregates Levy suggests that the most effective policy option for maximising the levy revenue and the production of recycled aggregates, while minimising the externality impacts of primary aggregates production, is to increase the rate of the (current UK) levy in Scotland.
What is the potential of a Scotland-specific #aggregates levy? Read our report for @scotgov, out today. It explores scenarios for a #tax on crushed rock, gravel and sand and the impact options have on the rate of #recycling of #construction waste.https://t.co/xo9EdcASwr— Eunomia Research & Consulting (@Eunomia_RandC) August 13, 2020
Scotland reviews an increase in aggregates levy rate #levy #aggregates https://t.co/MpsN0lXEum via @ExtIndustries— Extractive Industries (@ExtIndustries) August 25, 2020
The Scottish Government has pointed to the already high rates of recycling for construction and demolition waste, but suggested:
... it should be noted that some of the recycled aggregates are currently being utilised in low value uses of aggregates (e.g. pipe bedding or backfilling) due to various restrictions on use of recycled aggregates in concrete production and/or presence of various exemption for the landfill tax for inert waste. In order to increase the substitution of primary aggregates with recycled aggregates, further incentives will be needed through revising some of the exemptions of the landfill tax for inert materials, while introducing minimum quality restrictions on recovery of C&D wastes.
It's noteworthy that sales of sand and gravel in Scotland have followed trends witnessed elsewhere in the UK. The decline is expected to continue:
The market analysis revealed that aggregates production seems to be following a declining trend over the past few years, especially for sand and gravel. Moreover, the econometric forecasting of the aggregates production suggests that the declining trend will likely continue over the next few years as well, although econometric forecasts are always subject to a degree of uncertainty in the wider economy as well as the construction industry.
It's also noteworthy that Aggregate Industries’ largest quarry is in Scotland.
Anger after #marinewildlife protection zone redrawn to please @AggregateUK https://t.co/oMAH6wnftS #MPA #Glensanda pic.twitter.com/55Dk3uxBsV— Straitgate Action Gp (@straitgateactgp) July 31, 2016
As we have previously posted, calls have been made in the past for increases in the Aggregates Levy across the rest of the UK, in order to promote the increased use of sustainable sources of minerals as secondary aggregates – such as the hundreds of millions of tonnes of china clay mining waste piled all over Devon and Cornwall – as replacement for unsustainable primary or virgin aggregates.
