ABSTRACT
The Aggregates Levy came into operation on 1 April 2002 in the UK, except for Northern Ireland where it has been phased in over five years from 2003. It was introduced to ensure that the external costs associated with the exploitation of aggregates are reflected in the price of aggregate, and to encourage the use of recycled aggregate. There continues to be strong evidence that the levy is achieving its environmental objectives, with sales of primary aggregate down and production of recycled aggregate up. The Government expects that the rates of the levy keep pace with inflation over time, although it accepts that the levy is still bedding in. The Aggregates Levy Credit Scheme (ALCS) for Northern Ireland was suspended with effect from 1 December 2010 following a ruling by the European General Court. However, under EU law the UK government is required to recover unlawful State aid with interest from businesses that benefited from it.
