7 December 2006

No immediate hike on aggregates levy, while sustainability fund survives until 2008

The Chancellor's Pre-Budget Report today (6 December) shed little light on the long-term future of the Aggregates Levy but at least put to rest fears of a removal of the Aggregates Levy Sustainability Fund (ALSF).

However, doubts remain as to just how much will be available through the fund in 2007/8, with the Report simply announcing that it will be "extended". The QPA continues to oppose the Aggregates Levy on the grounds that this nominally green tax is having little impact on improving environmental standards. However, if the tax is to stay, the QPA has publicly called for the ALSF to remain in place and not be subject to further unexplained cuts from Defra.

As for the Levy itself, the Chancellor mentions in his Pre-Budget Report that the "Government will continue to work with industry stakeholders and consider the appropriate level for future rates at Budget 2007". The inference from this statement is that the Treasury could be shaping up to adjust the level of the tax, and the QPA will be following this up with the Treasury.

Simon van der Byl, Director General of the QPA, said that "today's Report doesn't shed a great deal of light on the tax situation for the industry, but at least commits to maintaining the Aggregates Levy Sustainability Fund which is good news for communities living in quarrying areas. However, with hints that the Levy may increase, but no real detail on the amount of funding that will be available in the ALSF pot next year, the QPA still has work to do to make sure that industry and local communities get the fairest treatment possible."

Link to the full Pre-Budget Report online here: http://prebudget2006.treasury.gov.uk/

ENDS

Notes to Editors

For more information please contact Jerry McLaughlin by tel: 0207 9638000 or e-mail mclaughlin@qpa.org.

The Quarry Products Association is the principal trade association representing the UK aggregates industry. Our members produce over 90% of aggregates extracted - sand and gravel and crushed rock - as well as silica sand, recycled aggregates, agricultural and industrial lime, asphalt, mortar, and ready-mixed concrete.

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