Scottish Aggregates Tax rate policy for 2026-2027: island communities impact assessment

4. Consultation and engagement

The Scottish Government has engaged a SAT expert advisory group to inform the development of the tax.

Established in January 2023, the advisory group has provided expertise informing the development of the Aggregates Tax and Devolved Taxes Administration (Scotland) Act 2024 (“the 2024 Act”) and continues to provide expertise on preparation for the implementation of SAT.

Advisory group members are drawn from a range of backgrounds, including industry representative bodies for both primary and recycled aggregate producers, aggregates consumers (including key public sector bodies), corporate stakeholders with an interest, and environmental organisations.

During the consultation and engagement process it was noted that island communities may have potential issues with regard to supply chains. SAT will aim to encourage the minimum necessary exploitation of primary aggregates, in order to maximise the use of secondary and recycled aggregates (which are exempt from the tax). Island communities may be disadvantaged due to their limited access to secondary and recycled aggregates, albeit the provisions in the 2024 Act largely reflect the core elements of the existing UK tax.

This is consistent with a strong view, particularly from aggregates industry representatives, to maintain a close degree of alignment between SAT and UKAL, to minimise potential disruption to the aggregates industry and their customers. Therefore, aligning the SAT rate for 2026-27 with the UK Aggregate Levy rate is not intended to have significant impacts.