Aggregates Tax (Hansard, 30 October 2001)

§ Mr. Key
To ask the Chancellor of the Exchequer if he will provide an estimate of the revenues the Government will receive from the aggregates tax in the current financial year. [10642]

§ Mr. Boateng
The aggregates levy will not be operational until April 2002. Therefore the Government will receive no revenue in the current financial year.

§ Mr. Hammond
To ask the Chancellor of the Exchequer if he will make an estimate of the revenues the Government will receive from the aggregates tax in the next financial year. [10994]

§ Mr. Boateng
An assessment of the revenues expected from the introduction of the aggregates levy was given in the Financial Statement and Budget report 2001. Forecast revenues will again be published in autumn's pre-Budget report. The revenues raised from the levy will be returned to business and local communities affected by quarrying through a 0.1 percentage point cut in employers' NICS and a new Sustainability Fund.

§ Mr. Key
To ask the Chancellor of the Exchequer if he will make a statement on the impact of the aggregates tax upon the construction industry. [10644]

§ Mr. Boateng
Budget 2000 announced that the Government had decided to introduce an aggregates levy with effect from April 2002. It will be charged at £1.60 per tonne on the commercial exploitation of primary aggregates in the UK, including those imported from abroad. Aggregates exported from the UK will be exempt.
A full regulatory impact assessment was published at the time of Budget 2000.
It is envisaged that a higher price of primary aggregate will provide an incentive to make better use of recycled aggregates and other alternatives, and more efficient use of primary aggregate. The impact on the actual costs to the end user will be dependent on the commercial decisions of those in the supply chain.