How a new and distinctive Scottish aggregates tax, replacing the UK levy, should be structured and operate.
The UK Aggregates Levy is an environmental tax that aims to reduce the extraction of primary (i.e. new) aggregate. In general, it applies to the commercial exploitation of primary aggregates – mostly crushed rock, gravel and sand – which are used in housebuilding, infrastructure, landscaping, environmental protection and much more.
While the extraction and production of aggregates creates and support jobs, many in remote and rural communities, the extraction of primary aggregates in particular can also create a negative environmental impact. As set out in our recently published draft Waste Route Map, we seek to embed circular construction practices to reduce resource needs, reduce waste and carbon, and encourage refurbishment and reuse. This devolved tax will form part of our approach to achieving that.
To help inform our next steps, we are seeking views on how a new and distinctive Scottish aggregates tax, replacing the UK levy, should be structured and operate. We will take current UK levy arrangements into account but wish to consider the case for enhancements that will ensure that the tax is well-designed, takes full account of the Scottish context and maximises opportunities offered by devolution.