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.

In February 2019, the UK Government announced that long-standing litigation on the UK Aggregates Levy had concluded and that a comprehensive review of the levy would be undertaken. This review is considering potential reforms to the levy, taking account of its objectives and impact, the effectiveness of the current design and the environmental and business context for aggregate construction and supply.

Given the review and its potential impacts on the future of the UK levy, decisions have not yet been taken about the timeline for devolution of the levy to Scotland. In the meantime, we are engaging with the UK Government on its plans and have commissioned research into the aggregates industry. This research will include consideration of potential policy options and financial modelling. This will support our evidence base for when the levy is devolved.