What is the Aggregates Levy in the UK for 2026/27?

Full answer

The Aggregates Levy was introduced in April 2002 under Finance Act 2001. It applies to the commercial exploitation of aggregate -- sand, gravel, and crushed rock -- extracted from the ground in the UK, or imported into the UK from outside the UK. **2026/27 rate:** £3.35 per tonne (this rate was set following the resumption of uplifts from April 2023 after a long freeze since 2009; £3.35 reflects the 2026/27 rate). **Who pays:** The levy is charged on the quarry operator or importer at the point of commercial exploitation (first sale or use). The cost is typically passed through the supply chain into construction project costs. **What counts as aggregate:** - Sand (including marine sand) - Gravel (including marine gravel) - Crushed rock (limestone, granite, sandstone, etc.) **Exemptions include:** - Aggregate already subject to levy when originally extracted (preventing double-counting on reprocessed material) - China clay waste and slate aggregate (excluded for industrial reasons) - Aggregate used in certain on-site processes (e.g. road construction within the extraction site) - Coal and shale by-products in certain circumstances **Revenue and purpose:** The levy raises approximately £350-400 million per year. Its primary purpose is to reflect the environmental costs of quarrying (noise, dust, visual impact, habitat disturbance) and to encourage use of recycled and secondary aggregate from construction and demolition waste. **Scottish and Welsh administration:** The Aggregates Levy is a reserved matter (UK-wide), unlike Landfill Tax which has devolved equivalents. Attempts to devolve the levy to Scotland and Wales have been slow due to EU State Aid complications in Northern Ireland that previously constrained reform.

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