Breaking New Ground? Developing a Scottish tax to replace the UK Aggregates Levy Consultation Analysis Report

Report on the responses to the Scottish Government consultation regarding the structure and operation of a Scottish Aggregates Tax

5. Part C: Impact Assessments

Chapter 12 of the consultation sought views on the Impact Assessments to be considered as part of work to develop the Bill.

Business and Regulation

C1 - Do you have any information which could inform any final BRIA relating to the Bill?

Number of responses: 2

Both responses to this question came from primary aggregates industry respondents. One noted the potential for economic impact if changes to the current system are introduced without adequate consideration of foreseeable impacts and unintended consequences. The other highlighted their view that the current UKAL scheme is open to non-declaration of aggregate sales, and adds cost to aggregates for which there is no viable recycled alternative. This could be improved.

Findings from the analysis of responses to questions throughout the consultation also informed the BRIA.

Child Rights and Wellbeing Impact Assessment

C2 - Are you aware of any examples of particular current or future impacts, positive or negative on young people, (children, pupils, and young adults up to the age of 26) of any aspect of the proposals in this consultation?

Number of responses: 3

Two primary aggregates industry respondents advised that some aggregates producers’ apprenticeship schemes could be impacted if the devolved tax severely impacted them and highlighted the potential value of linking in with the aggregate industry’s “Minerals Matters” initiative as development progresses. An environmental organisation suggested that the tax, given appropriate objectives and focus on the environment, could have a positive impact in this area.


C3 - Are you aware of any examples of potential impacts, either positive or negative, that you consider any of the proposals in this consultation may have on the environment?

Number of responses: 6

Comments from four primary aggregates industry respondents included: the need to consider the environmental impacts that can arise from aggregates in a holistic way, including considering the impact of transporting recycled materials; the potential for the proposed register of taxpayers to have a positive impact by helping to address the issue of both unregistered sites and borrow pits, where aggregate is extracted and used without tax due being paid; the potential benefit from introducing a sustainability fund; and the potential effects of a new or differential tax rate being set.

A waste and resource management respondent noted the potential environmental impact of not utilising available recycled materials or making their use uneconomic, whilst an environmental respondent noted that the positive or negative impact would depend on how the tax is implemented.


C4 – Are you aware of any examples of how the proposals in this consultation may impact, either positively or negatively, on these with protected characteristics (age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation)?

Number of responses: 4

Of the four responses, three advised that they felt the proposals for the tax would have no impact. An environmental group considered that the tax could have a positive impact with the appropriate objectives and with the factoring in of concerns around environmental damage and performance.

Fairer Scotland Duty

C5 – Are you aware of any examples of potential impacts, either positive or negative that you consider any of the proposals in this consultation may have on groups or areas at socio-economic disadvantage (such as income, low wealth or area deprivation)?

Number of responses: 5

Three respondents were not aware of any potential impacts.

One of the environmental respondents again noted that the proposals had the potential to have a positive impact, depending on the finalised objectives for the tax.

One primary aggregates industry respondent observed that any negative employment impacts on Scottish operators arising from the new tax would be disproportionately felt in rural and remote areas, which may not have many alternative jobs at a similar level of skill and earnings, whilst another highlighted the potential impacts of any rate divergence for companies located close to the border with England.

C6 - Are you aware of any examples of how the proposals in this consultation might impact, positively or negatively, on island communities in a way that is different from the impact on mainland areas?

Number of responses: 5

A local authority and a primary aggregates industry respondent considered that the proposals could have a negative impact on the islands, noting the more limited options for recycled alternatives and the potential need to important more aggregates.

One environmental organisation felt the proposals could have a positive effect on island communities depending how they were taken forward.

Scottish Government response

The final Impact Assessments published alongside the Aggregates Tax and Devolved Taxes Administration (Scotland) Bill are available at the Scottish Government Website.



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