Aggregates Levy

The Aggregates Levy is a tax on the commercial exploitation of aggregate, which includes rock, gravel or sand, as well as the spoil, waste, offcuts and other by-products of:

  • cutting rock to produce stone with one or more flat surfaces
  • extracting industrial minerals
  • producing lime or cement from limestone or limestone and other substances
  • using shale for a non-construction use

It is an environmental tax designed to discourage the extraction of virgin aggregate and encourage the recycling of construction and demolition waste.


The Scotland Act 2016 carried forward new legislative powers for raising the Aggregates Levy in Scotland.

The timetable for devolving the tax to the Scottish Parliament is dependent on the conclusion of the current EU and domestic legal proceedings around state aid in relation to the UK Aggregates Levy. The Fiscal Framework Agreement explains that the exact timing of devolution will be decided at the Joint Exchequer Committee once the legal proceedings come to a close.

We are conducting a significant piece of research into the aggregates industry, potential policy options, and financial modelling that should be completed by March 2019. This will form a robust evidence base for when the time comes to set the Aggregates Levy in Scotland.