Aggregates Levy - the final nail in the coffin?

BDS Marketing Research has issued an independent analysis of trends in aggregates market since 1990, and the effects of the Landfill Tax and the Aggregates Levy (AGL). It concludes that the AGL did not have a discernible effect in decreasing primary aggregate use, but it has created serious market distortions.

UK pre-cast concrete manufacturing has been put at a competitive disadvantage by imported concrete products which have more than quadrupled since the levy was introduced. Although imported aggregates have to pay the levy the aggregates within imported concrete products do not. There is also evidence of increased road miles for levy exempt aggregates – with an increased carbon footprint – and growing stockpiles of quarry by-products which can no longer compete in a skewed market.

The BDS study also highlights the low earning potential of the levy as the public sector uses over half of all aggregates consumed.