BAA calls on Chancellor to repeal Aggregates Levy

British Aggregates Association says scrapping of the levy would assist Government growth agenda 

THE British Aggregates Association (BAA) has written to the Chancellor, George Osborne, ahead of this month’s Budget, calling for the Aggregates Levy to be repealed before the impending court case in April.

The Association says such a move would provide a welcome boost to growth in the beleaguered construction industry, not least in the public sector which uses more than half of UK aggregate output.

Currently, the Aggregates Levy is set to increase to £2.10 per tonne from 1 April 2013.

In his letter to the Chancellor, BAA Secretary Peter Huxtable reminds Mr Osborne that the quarrying sector has been operating some 40% below pre-recession output levels for more than five years, with little or no indication of any improvement in the foreseeable future.

The letter goes on to say that the Levy brings little, if any, net cash benefit to the public purse, but its removal would help protect jobs in the quarry sector, provide a welcome boost to the construction sector and send a strong signal that the Government is supporting growth nationally.

The BAA maintains that the Levy has no ‘green tax’ credentials and has not delivered any environmental benefits. The Association believes that, perversely, it has actually done the opposite by increasing transport miles and placing previously saleable lower-quality materials outside the market.

In conclusion, Mr Huxtable says repealing the Levy would not only assist with the Government growth agenda, but would also resolve the issues arising from the rulings from the EU General Court and the very specific problems relating to Northern Ireland.